The Canadian Securities Administrators (CSA) has once again extended the deadline for crypto trading platforms to comply with stablecoin regulations, marking the second delay in the enforcement of these rules. Initially introduced in February 2023, these regulations banned the use of stablecoins not backed by a single fiat currency, with an April 30, 2024 deadline for full compliance. Due to technical issues raised by crypto platforms, the deadline was first pushed to October 31, and now to December 31, 2024.

The CSA acknowledged the ongoing difficulties faced by crypto platforms and stated they are open to considering alternative solutions. The extension is meant to give more time for platforms to either meet regulatory requirements or propose alternatives that address investor protection concerns.

The stricter regulations have already caused major players such as Binance, OKX, dYdX, and Paxos to leave Canada between March and May 2023. Despite the exodus, some exchanges remain optimistic. Kraken, for example, is committed to staying in Canada, with its managing director praising the collaborative nature of Canadian regulators. Similarly, Gemini has taken steps to comply by filing a pre-registration undertaking.

As the deadline approaches, crypto platforms will need to adapt quickly or face exclusion from the Canadian market, signaling a pivotal moment for the future of digital assets in the country.