Bitbuy Technologies Inc. Becomes First Crypto Asset Trading Platform to Be Regulated as a MarketplaceNovember 30, 2021
On November 30, 2021, Bitbuy Technologies Inc. (“Bitbuy”) became the first crypto asset trading platform (“CTP”) to be regulated as a marketplace in Canada. Bitbuy operates a proprietary platform though which clients may purchase, sell and hold crypto assets such as bitcoin and ether.
In Joint CSA/IIROC Staff Notice 21-329 Guidance for Crypto-Asset Trading Platforms: Compliance with Regulatory Requirements and CSA Staff Notice 21-327 Guidance on the Application of Securities Legislation to Entities Facilitating the Trading of Crypto Assets (the “CTP Notices”), the Canadian Securities Administrators (the “CSA”) and the Investment Industry Regulatory Organization of Canada stated that securities legislation may apply to CTPs that facilitate the trading of instruments or contracts involving crypto assets.
In connection with the CTP Notices, the CSA implemented an interim, time-limited registration allowing CTPs to operate within a regulated framework pursuant to which CTPs are required to register as a restricted dealer under Canadian securities legislation and to obtain exemptive relief from certain associated obligations.
Bitbuy is now registered as a restricted dealer and has obtained additional exemptive relief from the CSA pursuant to an order dated November 30, 2021. Most notably, Bitbuy became the first CTP registered as a restricted dealer to obtain exemptive relief from the marketplace rules set forth in National Instrument 21-101 – Marketplace Operation, National Instrument 23-101 – Trading Rules and National Instrument 23-103 – Electronic Trading and Direct Electronic Access to Marketplaces.
Wildeboer Dellelce LLP acted for Bitbuy in connection with its registration and exemptive relief applications, with a team comprised of Geoffrey Cher, Colin Romano, Jeff Arnold and Hannah Dodick (securities).