The Canadian Securities Administrators propose amendments to cryptocurrency investment fund requirements

ChainCatcher news, the Canadian Securities Administrators (CSA) has proposed amendments to regulations regarding how public investment funds handle crypto assets, aimed at further clarifying custody rights and the rules for funds dealing with crypto assets.

According to the amendment, only alternative investment funds and non-redeemable investment funds are allowed to directly purchase, sell, or hold crypto assets, while other mutual funds can only invest in these funds to gain exposure to cryptocurrencies. Additionally, the assets must be listed on exchanges recognized by Canadian securities regulators and must be interchangeable. The assets must also be insured and stored in cold wallets, and an annual review of the custodian's internal management is required by a public accountant.

It is reported that the proposal will be open for public consultation for 90 days, after which a consultation document will be drafted and a broader regulatory framework for crypto assets will be considered.