According to Foresight News, the Canadian Securities Administrators (CSA) have proposed regulatory amendments regarding how public investment funds handle crypto assets. The aim is to further clarify custody rights and rules for funds dealing with crypto assets. Under the proposed amendments, only alternative investment funds and non-redeemable investment funds would be allowed to directly buy, sell, or hold crypto assets, while other mutual funds could only invest in these funds to gain exposure to cryptocurrencies.
Additionally, the assets invested must be listed on exchanges approved by Canadian securities regulators and must be exchangeable. The assets must also be insured and stored in cold wallets, with an annual review of the custodian's internal management by a public accountant. The proposal will be open for public consultation for 90 days, after which a consultation paper will be drafted and a broader crypto asset regulatory framework will be considered.