In the wake of the recent collapse of popular retail crypto exchange FTX, the Canadian Securities Administrators (CSA) is warning investors that trading in crypto assets comes with elevated levels of risk that may not be suitable for many investors, in particular retail investors. Generally speaking, the value and liquidity of crypto assets are highly volatile.

Additionally, there are unregistered crypto asset trading platforms accessible by Canadians where essential safeguards that protect investors’ assets from loss, theft or misuse may not be in place.

Crypto asset trading platforms that operate in Canada and trade securities or derivatives are required to comply with Canadian securities law requirements, including registering with securities regulators. While this regulatory oversight plays an important role in investor protection, investors should know that registration cannot eliminate all risks associated with crypto asset trading platforms.

The CSA also reminds investors that trading crypto assets is a form of do-it-yourself online investing, and as such, requires considerable time, knowledge, skill and research. Investors may wish to seek advice from a registered investment advisor about other options for investing in crypto.

The CSA has several investor tools and resources available on its website designed to help Canadians be informed investors, including information about crypto assets.

The CSA, the council of the securities regulators of Canada’s provinces and territories, co-ordinates and harmonizes regulation for the Canadian capital markets.