Canadian Regulators: the Canadian Securities (CSA) and the Investment Industry Regulatory Organization of Canada (IIROC) have issued a notice to crypto trading platforms (CTPs) over what they are expected to conduct their advertisements.
The notice was released on Ontario Securities Commissions’ (OSC) website stating concerns over marketing and advertising tactics that violate securities legislation requirements. The agency did not, however, mention any specific platform.
OSC further elaborated how CTPs promotions and schemes were gambling styled.
“We have recently noted some CTPs using advertising or marketing strategies that include contests, promotions, bonuses, and time limits to encourage investors to engage in trading and to act quickly for fear of missing out on an investment opportunity or a reward.”
CSA and IIROC alleged that such promotions lure investors to make risky investment choices which they would unlikely make in a normal and sensitive environment. The agency further notes that such acts constitute a violation of the registrant’s obligation to be fair, honest to clients.
The notice sums up with examples of claims CTPs can make that violate Canadian securities laws. That includes claims like ‘We are your cheapest and best source for Bitcoin”. OSC insists that such a claim should be supported by hard evidence.
While Canadian regulators seem to be coming out remarkably clear regarding crypto trading platforms their counterparts in the US, regulators are finding it difficult to provide clarity regarding exchanges.