Canadian regulators against algorithmic stablecoins

The Canadian Securities Administrators (CSA) have created a new list of requirements for cryptocurrency companies.

Based on this list, they really do not like algo stablecoins. Now companies, exchanges, etc., will be prohibited from allowing users to deposit or purchase stablecoins unless they have written permission from the CSA.

To obtain permission, a series of requirements must be met, including fiat backing of the stablecoin that you want to allow users to use on the platform.

Or, to quote the regulator's words:

"For added certainty, we will not be providing no-action relief for VRCA that is not fully backed by an appropriate reserve and maintains its value using an algorithm."

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