The growing interest in the cryptocurrency industry and the volatile nature of digital assets are encouraging local regulators to act to protect their citizens.
Finally, the Canadian Securities Commission (CSA) and the Investment Industry Regulatory Authority of Canada (IIROC) have published guidance on the advertising, marketing and social media rules that cryptocurrency exchanges must comply with.
According to the statement, the purpose of the guide is to ensure that cryptocurrency exchanges avoid advertising and marketing that could mislead investors.
Canadian regulators have recently observed an increase in advertisements on cryptocurrency exchanges and gambling-style promotional phrases in these advertisements that may mislead investors: “Recently, competitions, promotions, bonuses to encourage investors to trade and act quickly for fear of missing an investment opportunity or a prize. We have identified some crypto exchanges using advertising or marketing strategies that include time limits and time limits.” it was said.
It was stated that such advertisements would cause investors to make more risky investment decisions and that goodwill obligations were violated.
In the guide, examples of which actions and advertisements are misleading were shared, and such actions were asked to be avoided.
While this guidance has placed an extra burden on cryptocurrency exchanges, it was welcomed by Canadian regulators’ clarification against undesirable actions.
While the lack of clarity of the regulators in the USA is criticized, we see that Canada is ahead of the USA in this regard, as in other issues when it comes to crypto.