How the crypto trading platform should lead advertising and promotion in Canada
Canadian regulators: Canadian Securities (CSA) and the Investment Industry Regulatory Organization of Canada (IIROC) have issued a notice to crypto trading platforms (CTPs) on what they are supposed to do with their advertisements.
The notice was posted on the Ontario Securities Commission (OSC) website raising concerns about marketing and advertising tactics that violate securities law requirements. However, the agency did not mention any specific platform.
The OSC explained in more detail how promotions and CTP programs were designed for gambling.
âWe recently noticed that some CTPs are using advertising or marketing strategies that include contests, promotions, bonuses and time limits to encourage investors to engage in trading and act quickly for fear of missing out on an opportunity. investment or reward. “
The CSA and IIROC have alleged that such promotions induce investors to make risky investment choices that they are unlikely to make in a normal and sensitive environment. The agency further notes that such acts violate the registrant’s duty to be fair and honest to clients.
The notice summarizes with examples of claims that CTPs can make that violate Canadian securities laws. This includes claims such as âWe are your cheapest and best source for Bitcoinâ. The OSC insists that such a claim be supported by hard evidence.
While Canadian regulators appear to be being remarkably clear about the crypto trading platforms of their counterparts in the United States, regulators are struggling to clarify trading.