FTX collapse fallout - Canada bans crypto leverage, crypto margin trading

A statement from the Canadian Securities Administrators (CSA), Canada’s provincial & territorial securities regulators, was issued overnight, on December 13.

• In a nutshell, all crypto trading firms operating in Canada are banned from offering margin or leverage trading services to any Canadian clients.
• crypto exchanges (websites) in Canada must also segregate custody assets from the platform’s proprietary business

More here at this link:

• "Crypto trading platforms giving these undertakings agree to comply with expanded terms and conditions that will include, among other things, requirements to hold Canadian clients' assets with an appropriate custodian and segregate these assets from the platform's proprietary business, as well as a prohibition on offering margin or leverage Leverage In terms of trading, leverage can be characterized as a loan, supplied by a broker, which allows a trader to be able to control a relatively large amount of money with a significantly lesser initial investment. As such, leverage effectively allows traders to make a much higher return on investment compared to trading without any leverage. Traders use leverage to make a profit from smaller movements in certain assets, such as stocks and foreign exchange.Given such small movements in these instrum In terms of trading, leverage can be characterized as a loan, supplied by a broker, which allows a trader to be able to control a relatively large amount of money with a significantly lesser initial investment. As such, leverage effectively allows traders to make a much higher return on investment compared to trading without any leverage. Traders use leverage to make a profit from smaller movements in certain assets, such as stocks and foreign exchange.Given such small movements in these instrum Read this Term for any Canadian client,"

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