Canadian securities regulators (CSA) and the Canadian Investment Industry Regulatory Organization (IIROC) issued guidance for cryptocurrency exchanges on the use of social media, as well as advertising and marketing.
The document contains recommendations regarding:
- statements in advertising and marketing materials that could be false or misleading;
- contests, promotional campaigns or “gamification” schemes (bonuses or rewards tied to trading volume);
- the use of social media to promote cryptocurrency exchanges;
- compliance with securities laws more generally.
“We are concerned that some of these strategies could unduly encourage investors to engage in excessively risky trading,” the guidance states.
Authors reminded that registered participants in the industry play an important role as “guardians of market integrity.” They should not, by their actions or inactions, “contribute to behaviour that harms market reputation,” regulators noted.
In April, the CSA and IIROC published a regulatory framework for the compliance of crypto-companies with regulatory requirements. The guidance provides a basis for managing risks associated with digital assets, including transparency, pricing definitions, insurance standards and custody.
Earlier in Canada updated rules for verifying cryptocurrency holders.
Recall, in August the Ontario Securities Commission banned two regulated cryptocurrency exchanges — Wealthsimple and Coinberry — from dealing with the USDT stablecoin from Tether.
Csa 20210923 21 330 Crypto Trading Platforms by ForkLog on Scribd
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