Canada’s Tightened Crypto Rules Push Firms to Comply or Leave

Canada’s recent moves to impose stricter rules on crypto companies show that US regulators have allies in cracking down on the asset class after last year’s turmoil.

Canadian securities regulators in February gave a 30-day deadline for unregistered crypto trading platforms operating in the country to commit to a so-called pre-registration undertaking. Firms are required to follow tougher regulations on segregating customer assets and prohibited from offering margin or leverage to users in Canada.

The new rules are prompting companies in the industry to make some hard choices about whether to comply and stay in the country or pull out. ...