The Canadian Securities Authority (CSA) has extended the deadline for cryptocurrency trading platforms to comply with stablecoin regulations. This is the second extension of the stablecoin rule's enforcement.

Restrictions on value-referenced cryptoassets (VRCA) were first introduced in February 2023. They banned stablecoins that were not backed by a single fiat currency (such as algorithmic stablecoins) from the end of that year. Trading in single fiat-backed stablecoins (FBCA) was allowed to continue until new regulations came into effect on April 30, 2024.

Willing to wait, open to alternatives.

Cryptoasset trading platforms reported technical issues meeting the April 30 deadline, so it was postponed to October 31. Now the date has been moved to December 31. The CSA stressed that it is open to other mechanisms to address its concerns. “The CSA has been actively engaging with CTPs [cryptocurrency trading platforms] and cryptocurrency industry participants,” it stated. It added:

“The extension is intended to provide more time for CTPs to comply with terms and conditions […] or propose alternatives that address investor protection concerns, provided that alternatives exist […] by December 31, 2024.”

After the end of the year, CTPs will only be able to trade with VRCAs “that comply with the conditions of their registration and exemption decisions, or their PRUs [pre-registration undertakings].”

Related: Parliamentary report recommends Canada recognize and strategize on blockchain industry

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