Canada bans crypto leverage and margin trading after FTX collapse - page 2.

GreatArkansas

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Quote from: hmadh411 on December 13, 2022, 09:18:36 PM

Huh they just don't like the ppl earn money
And they just angry that ppl are getting rich and they can't stole that money Grin

Trading with leverage is extremely risky, there are some people especially those new people who just started to trade a cryptocurrency can easily do this without any requirements, but it's risky for the people.
And additionally, that's why these centralized exchanges with margin trading/leverage can easily make their customer do trading without any proper introduction or requirements and I think it's intended or these exchanges are happy because of trading fees.

Overall, I don't think so this will affect Bitcoin or cryptocurrency itself because this regulation is about the centralized exchange, nothing to worry about if you are not doing any leveraged trading or margin trading.

hmadh411

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Huh they just don't like the ppl earn money
And they just angry that ppl are getting rich and they can't stole that money Grin

noorman0

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This is still somewhat liberating as long as there are no penal consequences for users as well to use high-risk trading types, including using a VPN to access the platform. In my mind, "Want to protect the investor" means no longer wishing to protect the investor from the risk of leveraged trading. The impact of FTX seems to be giving them a headache receiving lots of user complaints demanding protection.

Bitcoin_Arena

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Quote from: Oshosondy on December 13, 2022, 11:25:35 AM

After United States, now Canada. No magin, perpetual or future trading again on exchanges in Canada as Canadian Securities Administrators (CSA), the council of
It is because they want to protect Canadian investors, we all understand that, but if I am a Canadian, I will not like that after gaining experience from leverage trading over years now. But leverage trading is truly riskier.

I don't think any Government or authority would really care about protecting funds of their Citizens. It's always just about trying to gain control. Most Governments see cryptocurrencies and rogue unregulated exchanges as a threat to their power when more people start using them. Unfortunately, very many scammers lurk in the same waters too and with the very sad events of scams and hacks, the Government finds an excuse of banning cryptos or the crypto exchanges and their services.

Quote from: Oshosondy on December 13, 2022, 11:25:35 AM

Hope Canada is not like US that traders can not use foreign exchanges?

They already have a list of banned exchanges, though not yet so big. It's Kucoin and Poloniex, so I believe such exchanges would reject Canadian KYC verified customers to use their platforms.

jackg

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I don't think they've gone that far yet and they probably won't (Re segregating their market from the world like the US does).

I think this might protect Canadian investors from a lot of insider manipulation and other things that likely goes on at these exchanges (as well as protecting investors from poorly balanced companies).

It might allow the sector to open up a bit though too, it'd be possible to make a dex with advanced futures trading that was fully decentralised and that would be much better for traders as they could see how much funds are available and how safe their funds actually were on the platform.

Oshosondy

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After United States, now Canada. No magin, perpetual or future trading again on exchanges in Canada as Canadian Securities Administrators (CSA), the council of Canada’s provincial and territorial securities regulators, on Dec. 13 issued an update to crypto trading platforms operating in the country.

https://cointelegraph.com/news/canada-bans-crypto-leverage-and-margin-trading-after-ftx-collapse

Quote

According to the statement, all crypto trading firms operating in Canada — both local and foreign ones — have to comply with newly expanded terms, which ban them from offering margin or leverage trading services to any Canadian clients.

https://www.securities-administrators.ca/news/csa-provides-update-to-crypto-trading-platforms-operating-in-canada

Quote

Even with the adoption of these measures, crypto assets or financial products relating to crypto assets are high-risk investments. These risks could result from, among other things, crypto trading platform non-compliance with registration terms and conditions or undertakings, interconnectedness within the crypto sector, insolvency, hacks, price volatility and uncertain value propositions for individual assets. Canadian investors are urged to exercise caution and consider seeking advice from a registered investment advisor before investing in crypto; if they choose to pursue such an investment, despite all known risks, they should use a platform that is registered with CSA members.

It is because they want to protect Canadian investors, we all understand that, but if I am a Canadian, I will not like that after gaining experience from leverage trading over years now. But leverage trading is truly riskier.

I hope this would not go beyond the exchanges in Canada while Canadians should still be able to access other exchanges that offers leverage trading.

Hope Canada is not like US that traders can not use foreign exchanges?

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