The Canadian Securities Administrators Prohibit ICO Investing Through Crypto Contracts

The statement you provided appears to be related to a prohibition by the Ontario Securities Commission (OSC) on a specific investment firm, 3iQ, regarding the buying or depositing of value-referenced crypto assets, commonly known as stablecoins, through crypto contracts without the prior written consent of the Canadian Securities Administrators (CSA).

In a news release issued on October 1, 2021, the OSC stated that it had approved a settlement agreement with 3iQ, in which 3iQ admitted to breaching securities laws by allowing clients to purchase and deposit stablecoins through a crypto contract without obtaining the prior written consent of the CSA. The settlement agreement required 3iQ to pay a $150,000 administrative penalty and to undertake certain corrective actions.

It's important to note that this statement pertains to a specific case and does not necessarily represent a broader prohibition on the buying or depositing of stablecoins through crypto contracts in Canada. The regulatory treatment of stablecoins and other crypto assets in Canada is a complex and evolving area, and investors should carefully consider the risks and regulatory considerations associated with any cryptocurrency-related investment.