Regulatory Disclosure Framework for Digital Assets

This white paper discusses the regulatory landscape for crypto asset disclosures in Canada and the European Union, focusing on the challenges faced by Crypto Trading Platforms (CTPs) and how Broadridge's ClearFi platform addresses these challenges. It outlines the importance of standardized disclosures in the evolving financial markets, particularly as they pertain to the unique characteristics of crypto assets compared to traditional financial instruments. The paper details the regulatory requirements in Canada, where CTPs must comply with existing securities laws, and highlights the role of the Canadian Securities Administrators (CSA) in regulating these platforms. It also examines the Markets in Crypto-Assets (MiCA) regulation adopted by the European Union, which aims to create a harmonized framework for crypto asset service providers. The white paper emphasizes the necessity for clear and comprehensive disclosures to protect investors and ensure transparency in the crypto market, while also addressing the need for regulatory flexibility to foster innovation.