Canadian regulators announce marketing guidance for crypto to quash bad practice

Rick Steves

The use of gambling-style promotions, that may encourage excessive and risky trading by retail investors, is also of concern to the agencies.

The Canadian Securities Administrators (CSA) and Investment Industry Regulatory Organization of Canada (IIROC) have published marketing guidance for crypto platforms.

As players within the crypto sphere get increasingly funded to expand further their businesses, the Canadian regulators found it necessary to clarify the rules for advertising, marketing, and social media use under securities law and IIRQC.

The move aims to help crypto trading platforms understand and comply with these requirements as they have noticed a recent increase in advertising and marketing by crypto trading platforms.

According to CSA and IIROC staff, there have been statements in crypto trading platforms’ advertising and marketing materials that could mislead investors.

The use of gambling-style promotions, that may encourage excessive and risky trading by retail investors, is also of concern to the agencies.

Louis Morisset, CSA Chair and President and CEO of the Autorité des marchés financiers, said: “Misleading advertisements and improper marketing strategies may encourage investors to take on risks they would normally avoid, and not respecting the requirements under securities law and IIROC rules may raise concerns about a crypto trading platform’s fitness for registration.”

Andrew J. Kriegler, IIROC President and CEO, said: “Crypto trading platforms should consider their advertising and marketing strategies in the context of their obligations to treat clients fairly and honestly. IIROC will continue to work closely with the CSA to ensure investors are protected.”

Registered crypto trading platforms, platforms that have or will be applying for registration, and other registrants that may be considering establishing a platform as a new business line are the target of the guidance.

The document includes examples of misleading statements in advertising and marketing materials, and outlines the concerns of CSA and IIROC staff over the use of improper gambling-style contests, promotions, and schemes.

It also outlines regulators’ compliance and supervisory expectations for firms using social media. The Canadian regulators advised crypto trading platforms to consult with their legal counsel and contact their local securities regulatory authority on appropriate steps to comply with advertising, marketing and social media use requirements.

Read this next

Digital Assets

BlockDAG Presale Raises $9.9M as Batch 5 Nears Sell-Out Amid Bonk’s Fluctuating Trading Volume & Spell’s Bullish Price

Explore BONK’s trading volume, SPELL’s market shifts, and why BlockDAG’s 10,000 ROI makes it an ideal crypto for savvy investors in 2024.

Digital Assets

Cathie Wood’s sponsored Bitcoin ETF sees historic $200 million inflows

The ARK 21Shares Bitcoin ETF (ARKB), co-sponsored by Cathie Wood’s ARK Invest, registered historic inflows exceeding $200 million on Wednesday, signaling a robust appetite among investors for Bitcoin-centric investments.

Digital Assets

Sam Bankman-Fried might see his 25-year sentence halved

Sam Bankman-Fried, the founder of the failed cryptocurrency exchange FTX, was sentenced to 25 years in federal prison by a Manhattan court on Thursday. This comes after he was convicted of defrauding customers and investors, with Judge Lewis Kaplan highlighting the potential future risks posed by Bankman-Fried.

Technical Analysis

EURJPY Technical Analysis Report 28 March, 2024

EURJPY currency pair under the bearish pressure after the pair reversed down from the major resistance level 164.25, which also stopped the sharp weekly uptrend at the end of last year,

Digital Assets

BlockDAG’s Presale Hits $9.9M, MultiversX & MINA Price Predictions Show Green

Read about BlockDAG’s promising $10 prediction and insights on MultiversX Price Prediction as MINA’s potential unfolds.

Digital Assets

Rockstar Co-Founder and All-star Line Up Join Advisory Board to Take Metacade into Post Beta Orbit

Metacade, the revolutionary Web3 gaming platform, prepares to streak out of beta with a slew of ground-breaking initiatives that will redefine the way blockchain games are developed.

Retail FX

Prop firm The Funded Trader shuts down, claims relaunch in April

Prop trading firm The Funded Trader has ceased all operations, with claims for a relaunch in the near future.

Digital Assets

Ethereum-Based Tokenized Real Estate Platform USP Launches On Republic

How This Californian Startup Is Revolutionizing Real Estate Investment through Ethereum-Based Tokenization.

Digital Assets

Sui Spikes in Weekly DEX Volume, Joins Top 10 of All Blockchains

March DEX volume on Sui stands at over $2.88B – up more than 49% from February – with decentralized exchange Cetus and wholesale liquidity layer DeepBook leading.

<