Canadian securities regulators publish amendments pertaining to investment funds investing in crypto assets

The Canadian Securities Administrators (CSA) announced amendments to National Instrument 81-102 Investment Funds that affect reporting issuer investment funds, specifically Public Crypto Asset Funds, which invest directly or indirectly in crypto assets. The changes outline criteria for the types of crypto assets allowed, impose restrictions on investments, and set custody requirements for holding crypto assets. CSA Chair Stan Magidson emphasized the commitment to enhanced investor protections and the stability of capital markets, stating, 'By implementing regulations around crypto asset offerings, we aim to provide guardrails in this evolving sector.' The amendments are designed to facilitate new product development while embedding investor protection measures in the regulatory framework.