The Canadian Securities Administrators, or CSA, and the Investment Industry Regulatory Organization of Canada, or IIROC, have issued guidelines for crypto trading platforms operating in the country to avoid “documents. advertising and marketing that could mislead investors ”.
In a September 23 post, guidelines from Canadian regulators warn crypto companies not to announce “play style” promotions in which an investor is encouraged to register within a given timeframe to enjoy a reward or of an opportunity. Although the guidelines are apparently vague on restrictions on social media posts, regulators have recommended that trading platforms designate a person to review and approve communications and put in place a system to ensure all posts are in compliance. regulatory directives.
“Deceptive advertising and inappropriate marketing strategies can encourage investors to take risks that they would normally avoid, and failure to comply with the requirements of securities law and IIROC rules can raise concerns about the suitability of a crypto trading platform to be registered, ”said CSA Chairman Louis Morisset.
Some of the seemingly egregious examples provided by regulators included exchanges suggesting they are listed under applicable securities laws or otherwise approved by regulators. The CSA and IIROC have encouraged trading platforms to consult with their legal teams before serving any advertisements and commercials to the public.
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IIROC is a self-regulatory organization that provides measures to protect investors and support healthy domestic capital markets, while the CSA is a national standards group spanning all ten provinces and three territories of Canada. The two securities organizations have previously issued joint statements regarding the rules applicable to players in the crypto industry and have worked together to clarify the use of crypto with the country’s securities laws.