Digital asset funds are not subject to reductions in margin waiver in Canada under the country’s latest quarterly list.
Canada’s investment regulator recently updated its list of securities eligible for reduced margins with digital assets being markedly excluded (LSERM).
“Until further notice, cryptocurrency funds are subject to a reduction in margin. This eligibility status also applies to cryptocurrency funds on which OCC options are traded. For cryptocurrency funds, margin eligibility is Otherwise, it may be determined according to (other requirements),” Ciro’s guide now states.
In Canada, LSERM lists securities that allow regulators to reduce margin rates by 25% in inventory positions and 30% in client positions. This list, updated quarterly, accepts only securities listed on the Toronto Stock Exchange and its sister company Venture Exchange (TSXV), CBOE Canada and the Canadian Stock Exchange.
Eligibility criteria include price volatility margins of less than 25%, public floats above $70 million, and daily trading volumes above $750,000 for a given quarter. Security must also be listed in the Canadian Exchange for at least six months. Digital assets meet all other criteria, but their volatility was considered excessive for LSERM.
The abolition of digital assets will affect Canadian transactions as there is a small pool of funds for investors to borrow for margin trading. Second, this increases the likelihood of major transactions that reduce liquidity and cause price fluctuations.
High margin requirements mean that digital asset traders are more likely to face forced liquidation in the event of a market decline, as the wiggle room is much smaller.
Tightening Canada’s digital asset regulations
Like many other major economies, Canada has been paying close attention to digital assets over the past few years, increasing regulations to curb crime and protect investors.
Last October, the country adopted the OECD Crypto Assets Reporting Framework, which will be fully effective in 2026, and transcending tax transparency and borders with all EU member states, Australia, New Zealand, Mexico and all countries. We will support your cooperation. South Africa.
The biggest shift occurred on December 31st, when new guidelines from Canadian securities managers came into effect. These include daily reporting requirements by the exchange, stricter leverage and custody requirements, and new licenses to provide Stablecoins.
The new rules led to Vasps’ departure from Canada, with notable exits such as Gemini, Binance, Okx, Paxos and Bybit, owned by Winklevoss. Stakeholders in some industry have criticised Canadian approaches. We believe that the Canadian approach is inherently forceful and restricts innovation.
“Currently in Canada, we have a conversation about how we regulate stubcoins within our securities framework and actually have conversations about the fact that stubcoins from around the world are actually used for payments. “We do this,” said Sophia Court, who leads public policy. ShakePay, a Canadian digital currency payment processor.
The sector has placed a big bet in this year’s election, with opposition leader Pierre Polyable emerging as the country’s most “crypto-friendly” candidate. Poilliebre has been supported by the “crypto brothers” from Elon Musk to Coinbase (Nasdaq: Coin) CEO Brian Armstrong, whom Canada believes can have its own “Trump Moment.” It’s there.
Czech Republic launches laws that exempt Hodler from tax
Elsewhere, President of the Czech Republic, Petr Pavel, has signed a new law that will exempt taxes from residents who have held digital assets for at least three years.
The new law was passed by national lawmakers in December as part of the country’s implementation of the EU market in the Crypto Assets (MICA) framework.
In addition to the three-year exemption, the law exempts you from reporting transactions when filing taxes if the total amount is less than 100,000 Koruna (approximately $4,150) per year.
“The principle is that if it is encrypted for more than three years, sales are not taxed or transactions up to CZK 100,000 ($4,136) per year are not obligated to report to a tax declaration similar to that of a securities,” the government said. Officials told the media.
The new law comes days after Czech National Bank governor Alesi Mischur proposed preparations for the National Strategic BTC, similar to Trump’s initiative in Mischur, in the US. In digital assets, they have joined Brazil, Poland, Russia and Germany, and have come to coincide with Trump.
Watch: Richard Baker engineers the smarter world of finance with blockchain
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