The notice sets out interim terms and conditions that would apply to cryptoasset trading platforms and the issuers of fiat-backed cryptoassets if they wish to continue allowing Canadian clients to purchase or deposit these assets.

The interim terms and conditions are intended to address investor protection concerns presented by value-referenced cryptoassets and include, among other things, the following provisions:

• The issuer of the value-referenced cryptoasset must maintain an appropriate reserve of assets with a qualified custodian, held for the benefit of the cryptoasset holder.
• The issuer of the value-referenced cryptoasset and cryptoasset trading platforms that offer them must make certain information related to governance, operations and reserve of assets publicly available.

The report examines attitudes and behaviours around investing among two Gen Z segments (ages 18 to 25) in the United States - those with and those without any investment accounts - and compares them with their investing millennial and Gen X counterparts. The report also profiles Gen Z investors in Canada, the United Kingdom and China and compares them with their counterparts in the United States.

Key findings include:

• Despite their young age, a large percentage of Gen Zs in the United States invest, with cryptocurrency as their top choice: 56% report owning at least some investments. They primarily invest in cryptocurrency (55%) and individual stocks (41%). They are less likely than their older counterparts to use mutual funds and are more likely, along with millennials, to invest in crypto and non-fungible tokens compared with Gen Xers.
• Gen Z investors in the United States use a variety of resources to learn about investing: They learn about investing and finances primarily through social media (48%), internet searches (47%) and parents/family (45%). Their top online resource is YouTube (60%) followed by internet searches, Instagram, TikTok, Twitter, Reddit and Facebook.
• Gen Z investors in the United States are risk-takers: Almost half (46%) are willing to take substantial or above-average financial risks. 50% say they have made an investment driven by their fear of missing out (FOMO).
• Barriers to investing: Gen Zs in the United States who are not yet investing cite lack of savings (65%), not having enough income/living paycheck-to-paycheck (64%) and lack of knowledge about investing (56%) as the primary reasons why.
• Like their counterparts in the United States, Gen Zs around the world are investing in large numbers: Among the countries covered by the study, Canada has the highest percentage of Gen Z investors, with nearly 74% saying they own at least one investment, compared to 56% in the United States, 49% in the United Kingdom and 57% in China.

The initiatives are intended to, among other things, "optimize services to financial consumers, achieve a better understanding of the challenges and risks facing consumers, and step up oversight and supervision and the fight against emerging illegal practices. Special attention will be given to enhancing Quebeckers’ financial literacy in the context of digital transformation in the financial sector, increased consumer connectivity and steady growth in on-line fraud."

Enhanced pre-registration undertaking will be required, which CTPs must provide in order to continue operating in Canada while pursuing their applications for registration with Canadian securities regulators.

Unregistered CTPs that continue to operate while pursuing registration are expected to provide an enhanced pre-registration undertaking to their principal regulator within 30 days of publication of this notice.

These pre-registration undertakings will include "enhanced expectations regarding the custody and segregation of cryptoassets held on behalf of Canadian clients and a prohibition on offering margin, credit, or other forms of leverage to any Canadian client". They will also "prohibit CTPs from permitting clients to purchase or deposit value-referenced cryptoassets (stablecoins) and proprietary tokens without the prior written consent of the CSA."

If a CTP is unable or unwilling to provide an enhanced pre-registration undertaking, the CSA expects it will take "appropriate action to off-board existing Canadian users and impose restrictions to prevent Canadian users from accessing its products or services."