Canadian Securities Administrators (CSA) and the Investment Industry Organization of Canada (IIROC) have issued a warning against predatory marketing campaigns and outlined the correct marketing and advertising requirements in a new document.
According to the regulators, the current crypto trading platforms’ marketing and advertising campaign strategies tends to feed on investors’ innocence by using gambling-style promotions that encourage risky trading, which is a violation of existing securities legislation.
Per the above, the IIROC President and CEO Andrew Kriegler believe that trading platforms should consider toning their campaigns to the new regulation.
In the compliance document, the Canadian authorities presented different examples of dangerous marketing campaigns. Among them are:
- Your crypto assets are safe with us because we meet all regulatory requirements as a fully licensed Money Services Business under Canadian legislation.
- Our platform is consistently rated the safest and most trusted platform by leading rating agencies, including Digital Bitcoin Rating Service and Triple-A Crypto All-Stars.
- Important Update! BTC skyrockets! Don’t get left behind!
The authorities revealed that what could be deduced from the first statement is that the registration of a platform is enough to protect users’ interests, without other regulations that must be complied with. The second statement lacks proof and has little credibility. While the third statement appears like an investment advice, which asset traders are prohibited from.
The compliance document also includes how the crypto firms should engage with their users on social media and suggests ways that marketing and advertising strategies scrutinize could be compliant with the new regulation.