Canadian authorities against predatory marketing campaigns by crypto trading platforms

Mon 27 Sep 2021 ▪ 10h42 ▪ 2 min read — by James Taylor

The Investment Industry Regulatory Organisation of Canada (IIROC) and the Canadian Securities Administrators (CSA) have spoken out against misleading marketing campaigns by cryptocurrency trading platforms (CTPs). According to the regulator, such advertising may violate the current securities legislation due to the “gambling-style” of promotion that encourages risky trading.

According to Beincrypto, Andrew Kriegler, IIROC president and CEO, believes that the authorities must factor into the consciousness of trading platforms. According to Andrew, advertising should not “violate the registrant’s obligation to treat clients fairly, honestly and in good faith”.

“Your crypto assets are safe with us because we meet all regulatory requirements as a fully licensed Money Services Business under Canadian legislation.”

“Our platform is consistently rated the safest and most trusted platform by leading rating agencies, including Digital Bitcoin Rating Service and Triple-A Crypto All-Stars.”

“Important Update! BTC skyrockets! Don’t get left behind!”

These are a few examples of controversial marketing slogans used by crypto trading platforms operating in Canada.

The first one implies that registering a CTP as a money services business is a good enough reason to say the platform is willing and, most importantly, able to provide its clients with adequate protection. But that’s not the case. After all, this announcement doesn’t consider other legislative acts trading platforms may have to comply with under securities legislation.

The second statement is simply unfounded, the author implying that the company should be trusted based solely on the agencies’ ratings.

The third slogan can be interpreted as investment advice, which crypto trading platforms aren’t authorised to provide.

According to the Canadian authorities, from now on, CTPs’ advertising campaigns will first be reviewed, then checked for compliance by the CSA.

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James Taylor

Trends are temporary. The blockchain isn’t a trend; it’s the future. I want to help as many people as possible understand it in a simple, clear and interesting way.

DISCLAIMER

The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.

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