The Globe and Mail reports in its Friday edition that Canadian securities regulators are warning cryptocurrency companies against misleading advertising and promotional tactics that could potentially lure investors into making risky trades on unfamiliar crypto products. The Globe's Vanmala Subramaniam writes that the Canadian Securities Administrators issued an 11-page document Thursday afternoon that clarified the specific dos and don'ts for companies promoting investments in cryptocurrency. The CSA had become aware of ads by certain companies that may have breached securities legislation. This is the first time securities regulators have come up with detailed advertising guidance directed at both unregulated and regulated crypto-trading platforms in Canada. No specific companies were named in the document. In particular, regulators took issue with companies that engage investors using "gambling-style contests, promotions and schemes." The CSA document used the fictional example of a company offering a promotion involving a time-limited bonus for the first 500 investors who invest in a crypto asset. To date, only one crypto-trading platform -- Wealthsimple -- is fully regulated under Canadian securities legislation.
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