Canada’s CSA Issues Guidelines on Crypto-Related Advertising Campaigns
- The guidelines were unveiled through the CSA and the IIROC websites.
The Canadian Securities Administrators (CSA) released a set of guidelines on Thursday, targeting all advertising and marketing campaigns pursued by crypto trading platforms. According to the press release, the regulator had observed a series of advertising banners and statements that could mislead investors.
Also, the Canadian watchdog noticed a pick-up in such campaigns targeting domestic investors. Additionally, it unveils a pattern of displaying casino-style ads that do not meet the requirements of the CSA because it encourages ‘excessive and risky trading by retail investors.’
“Misleading advertisements and improper marketing strategies may encourage investors to take on risks they would normally avoid, and not respecting the requirements under securities law and IIROC rules may raise concerns about a crypto Trading Platform Trading Platform In the FX space, a currency trading platform is a software provided by brokers to their respective client base, garnering access as traders in the broader market. Most commonly, this reflects an online interface or mobile app, complete with tools for order processing.Every broker needs one or more trading platforms to accommodate the needs of different clients. Being the backbone of the company’s offering, a trading platform provides clients with quotes, a selection of instruments to trade, real In the FX space, a currency trading platform is a software provided by brokers to their respective client base, garnering access as traders in the broader market. Most commonly, this reflects an online interface or mobile app, complete with tools for order processing.Every broker needs one or more trading platforms to accommodate the needs of different clients. Being the backbone of the company’s offering, a trading platform provides clients with quotes, a selection of instruments to trade, real Read this Term’s fitness for registration,” Louis Morisset, the CSA Chair and President and CEO of the Autorité des marchés financiers, commented on the situation.
That said, the regulator updated its members’ website with the guidelines, as well as via the IIROC site, the pan-Canadian self-regulatory organization that oversees all investment dealers and their trading activity in Canada’s debt and equity markets.
“Crypto trading platforms should consider their advertising and marketing strategies in the context of their obligations to treat clients fairly and honestly. IIROC will continue to work closely with the CSA to ensure investors are protected,” Andrew J. Kriegler, IIROC President and CEO, stated on the matter.
Strengthening Social Media Ads Compliance
Moreover, the CSA said that it would pay closer attention to social media advertising related to Cryptocurrencies Cryptocurrencies By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw Read this Term to make sure it is compliant with the new guidelines. In March, both the CSA and IIROC issued new guidance determining securities law requirements that apply to crypto-asset trading platforms.
The proposed regulatory framework includes mandatory licensing for certain cryptocurrency trading platforms, particularly those that maintain customer funds control. However, non-custodial exchanges appear more likely to benefit from a registration exemption, provided that they do not offer margin or leveraged trading.
The Canadian Securities Administrators (CSA) released a set of guidelines on Thursday, targeting all advertising and marketing campaigns pursued by crypto trading platforms. According to the press release, the regulator had observed a series of advertising banners and statements that could mislead investors.
Also, the Canadian watchdog noticed a pick-up in such campaigns targeting domestic investors. Additionally, it unveils a pattern of displaying casino-style ads that do not meet the requirements of the CSA because it encourages ‘excessive and risky trading by retail investors.’
“Misleading advertisements and improper marketing strategies may encourage investors to take on risks they would normally avoid, and not respecting the requirements under securities law and IIROC rules may raise concerns about a crypto Trading Platform Trading Platform In the FX space, a currency trading platform is a software provided by brokers to their respective client base, garnering access as traders in the broader market. Most commonly, this reflects an online interface or mobile app, complete with tools for order processing.Every broker needs one or more trading platforms to accommodate the needs of different clients. Being the backbone of the company’s offering, a trading platform provides clients with quotes, a selection of instruments to trade, real In the FX space, a currency trading platform is a software provided by brokers to their respective client base, garnering access as traders in the broader market. Most commonly, this reflects an online interface or mobile app, complete with tools for order processing.Every broker needs one or more trading platforms to accommodate the needs of different clients. Being the backbone of the company’s offering, a trading platform provides clients with quotes, a selection of instruments to trade, real Read this Term’s fitness for registration,” Louis Morisset, the CSA Chair and President and CEO of the Autorité des marchés financiers, commented on the situation.
That said, the regulator updated its members’ website with the guidelines, as well as via the IIROC site, the pan-Canadian self-regulatory organization that oversees all investment dealers and their trading activity in Canada’s debt and equity markets.
“Crypto trading platforms should consider their advertising and marketing strategies in the context of their obligations to treat clients fairly and honestly. IIROC will continue to work closely with the CSA to ensure investors are protected,” Andrew J. Kriegler, IIROC President and CEO, stated on the matter.
Strengthening Social Media Ads Compliance
Moreover, the CSA said that it would pay closer attention to social media advertising related to Cryptocurrencies Cryptocurrencies By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw Read this Term to make sure it is compliant with the new guidelines. In March, both the CSA and IIROC issued new guidance determining securities law requirements that apply to crypto-asset trading platforms.
The proposed regulatory framework includes mandatory licensing for certain cryptocurrency trading platforms, particularly those that maintain customer funds control. However, non-custodial exchanges appear more likely to benefit from a registration exemption, provided that they do not offer margin or leveraged trading.