Leverage trading by cryptocurrency companies in Canada will be banned. Cryptocurrency exchanges must manage customer funds separately.

According to guidelines posted on the website by the Canadian Securities Regulatory Authority (CSA) on the 12th (local time), cryptocurrency exchanges must store customers’ funds separately from business funds.

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The CSA said, “The cryptocurrency exchange must agree to the revised terms and conditions that properly manage Canadian customers’ assets, operate assets separately from the platform business, and prohibit leverage transactions.”

CSA pointed out the high speculation of cryptocurrency assets. Even if the measures are implemented, cryptocurrency and cryptocurrency financial products are at high risk, CSA said. “There can be problems at any time due to cryptocurrency companies not complying with regulations, hacking, and high price volatility.”

Canadian authorities are generally skeptical of cryptocurrency. Canadian Prime Minister Justin Trudeau once called cryptocurrency a “suspicious and reckless economic idea” and warned that “Bitcoin and tokens are not ways to escape inflation.” Canadian securities regulators intensively cracked down on unregistered cryptocurrency companies, saying major cryptocurrency exchanges such as Binance and Cucoin did not get permission from the authorities.