21:19:44 EDT Tue 23 Apr 2024
Enter Symbol
or Name
USA
CA



Globe says OSC, others tighten rules on crypto promos

2021-09-24 08:51 ET - In the News

Also In the News (C-*ASC) Alberta Securities Commission
Also In the News (C-*BCSC) BC Securities Commission
Also In the News (C-*QSC) Quebec Securities Commission
Also In the News (C-POW) Power Corp of Canada

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.

© 2024 Canjex Publishing Ltd. All rights reserved.