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Divya Mathur
Sep 24, 2021
by Divya Mathur

Canadian Regulators Announce New Advertising Guidelines for Crypto Exchanges

Canadian Crypto Advertising

Table of contents

  1. Canadian Securities Regulators Issue Advertising Guidelines for Crypto Exchanges
  2. Investment Decisions Should Not Be Based on Emotion: Netcoins President
The Canadian Securities Administrators and the Investment Industry Regulatory Organization of Canada outlined new advertising and marketing guidelines for crypto exchanges on Thursday. According to Ontario Securities Commission chair Grant Vingoe, the guidelines are aimed at safeguarding investors in crypto’s “Wild West” atmosphere.

Canadian Securities Regulators Issue Advertising Guidelines for Crypto Exchanges

Canadian investment watchdog has laid out fresh advertising guidelines for cryptocurrency exchanges. 

The guidelines address promotional activities across all mediums, including social media, and prohibit the use of “gambling style promotions.”

"We are concerned that some of these strategies may inappropriately encourage investors to engage in excessively risky trading, taking on risks that they would normally avoid," a staff document released by CSA and IIORC read. “We wish to remind CTPs that registered dealers have an important role as gatekeepers of the integrity of the capital markets. They should not, by act or omission, engage in or facilitate conduct that brings the market into disrepute."

Along with marketing guidance, the CSA and IIORC have warned crypto exchanges about keeping a record of all their social media interactions with potential clients.

The new guidelines have been welcomed by many in the industry, including investor rights advocates, attorneys, and some crypto exchanges as well. Jean-Paul Bureaud, the executive director of FAIR Canada, was especially welcoming of social media’s inclusion in the requirements.

“This is aimed at protecting retail investors. The people who invest in cryptocurrency tend to be younger, and tend to be more comfortable communicating on social media,” he told Toronto Star.

Investment Decisions Should Not Be Based on Emotion: Netcoins President

Reacting positively to the guidelines, Mitchell Demeter, the president of crypto exchange Netcoin said that the development will help filter out “some of the bad actors” in the industry.

“Investment decisions should be built on education on trust, not on emotion or fear of missing out,” he said.

“This will help make investors more confident in the industry, and I think that’s a good thing,” he stated while adding that Netcoins is currently seeking a license under the jurisdiction of the B.C. Securities Commission.

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Canadian Securities Administrators (CSA) Investment Industry Regulatory Organization of Canada (IIORC)
Canadian Regulators Announce New Advertising Guidelines for Crypto Exchanges
Divya Mathur
Divya is a postgraduate from Jawaharlal Nehru University specializing in International Relations and a professional writer with more than 5 years of experience writing for the web. She is an avid reader interested in the global financial system and the effects of decentralization. At Cryptoknowmics, she hopes to deliver clear and understandable content to inform readers about the latest events in the crypto sector.

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