Canadian securities administrators remind investors of inherent risks associated with cryptocurrency futures contracts

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December 18, 2017

Montreal - The Canadian Securities Administrators (CSA) would like to remind dealers and investors of the inherent risks associated with products linked to cryptocurrencies, including futures contracts. While these contracts may be traded on regulated exchanges and may be cleared by regulated central counterparties, the fact remains that their high level of risk will not be suitable for all types of investors.

"More specifically, the underlying value of these futures contracts is based on trading occurring on markets for cryptocurrencies which are largely unregulated," said Louis Morisset, CSA Chair and President and CEO of the Autorité des marchés financiers. "Therefore, there may be some circumstances such as price volatility in the underlying markets, which may lead to consequences such as sudden and significant margin calls in the futures market."

As is the case with every investment, an investor looking to participate in cryptocurrency futures trading should understand all of the risks involved.  

The CSA reminds registered dealers and advisers that they must perform their own due diligence on these cryptocurrency-linked products before recommending them to their clients.

The CSA will continue to follow developments surrounding these initiatives. For additional information on the risks of cryptocurrencies, please refer to CSA Staff Notice 46-307 Cryptocurrency Offerings.

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

For more information: 

Sylvain Théberge
Autorité des marchés financiers
514-940-2176

Alison Walker
British Columbia Securities Commission
604-899-6713

Kristen Rose
Ontario Securities Commission
416-593-2336

Hilary McMeekin
Alberta Securities Commission
403-592-8186

Jason (Jay) Booth
Manitoba Securities Commission
204-945-1660
 

Marissa Sollows
Financial and Consumer Services 
Commission, New Brunswick
506-643-7853

David Harrison
Nova Scotia Securities Commission 
902-424-8586


Steve Dowling
Government of Prince Edward Island, 
Superintendent of Securities
902-368-6288

Kimberly Ryan
Office of the Superintendent of Securities 
Newfoundland and Labrador
709-729-2602

Rhonda Horte
Office of the Yukon Superintendent of 
Securities
867-667-5466

Jeff Mason
Nunavut Securities Office
867-975-6591


Tom Hall
Office of the Superintendent of Securities
Northwest Territories
867-767-9305

Shannon McMillan
Financial and Consumer Affairs
Authority of Saskatchewan
306-798-4160


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