Canada’s Security Regulator Releases New Guidance for Crypto-Trading Firms Relating to Advertising and Marketing
The Canadian Securities Administrators (CSA) has released fresh guidance for cryptocurrency exchanges on advertising and marketing along with the use of social media.
An umbrella group for securities regulators in the country, CSA published the guidelines this week in collaboration with the Investment Industry Regulatory Organization of Canada after they became aware of certain advertising activities and marketing strategies by crypto trading platforms (CTPs) that may breach certain requirements of securities legislation and/or raise investor protection or public interest concerns.
According to the joint staff notice, it assists those CTPs that are registered as a dealer, have applied for registration, or are considering establishing as a CTP.
The notice covers the false or misleading statements made in advertising and marketing materials and improper “gambling style” promotions and schemes that encourage trading or excessively risky trading.
“We wish to remind CTPs that registered dealers have an important role as gatekeepers of the integrity of the capital markets. They should not, by act or omission, engage in or facilitate conduct that brings the market into disrepute.”
These guidelines come on the heels of Canadian regulators tightening their noose on unregistered service providers.
As we reported last month, its security regulator prohibited regulated crypto exchanges from trading in Tether (USDT) stablecoin. In June, Binance announced that it is restricting its services for users in Ontario for “compliance” reasons. Earlier this year, the Ontario Securities Commission (OSC) had filed an enforcement action against crypto exchanges.