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The Canadian Securities Administrators and the Investment Industry Regulatory Organization of Canada have published guidelines for crypto trading platforms in meeting the marketing, advertising, and social media compliance requirements.
Canadian Regulators Issue Guidelines on Crypto Marketing
In a recently issued publication, the Canadian regulators’ guidelines warned to raise concerns over the use of “gambling-style promotions” that may lure retail investors to engage in excessive and risky trading.
Per the document, the regulators recommended trading platforms to designate an individual to review and approve communications and set up a system to ensure all messages are in compliance with the regulatory guidelines.
IIROC President and CEO Andrew Kriegler said:
The regulators want exchanges that are registered under current securities laws or otherwise approved by regulators. Under this, the CSA and IIROC encouraged trading platforms to consult with their legal teams prior to releasing advertising and marketing announcements to the public.
CSA chair Louis Morisset, said:
Social Media Usage Will be Scrutinized
Social media usage has also been addressed that when applying for registration, the trading platform’s marketing and advertising strategies may be subjected to scrutiny by the CSA to check whether compliance is achieved.
The IIROC is a self-regulatory body that proposes measures to protect investors to support healthy domestic capital markets while the CSA is a national standards group covering Canada’s ten provinces and three territories. The two securities bodies have previously issued joint statements regarding rules on crypto industry players and worked together to clarify the use of crypto with the country’s securities laws.