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.
<h2><strong>Canadian Regulators Issue Guidelines on Crypto Marketing</strong></h2>
In a recently issued publication, the Canadian regulators’ guidelines <a href="https://www.iiroc.ca/news-and-publications/notices-and-guidance/canadian-securities-regulators-outline-expectations-advertising-and-marketing-crypto-trading" target="_blank" rel="nofollow noopener">warned</a> 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:

<em>“Crypto trading platforms should consider their advertising and marketing strategies in the context of their obligations to treat fairly and honestly.”</em>

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:

<em>“Misleading advertisements and improper marketing strategies may encourage investors to take on risks they would normally avoid, and not respecting the requirements under securities law and IIROC rules may raise concerns about a crypto trading platform’s fitness for registration.”</em>
<h2><strong>Social Media Usage Will be Scrutinized</strong></h2>
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 <a href="https://www.cryptoknowmics.com/news/how-to-buy-and-sell-cryptocurrencies-in-canada/">Canada’s</a> 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.

Canadian Regulators Warn Crypto Platforms on Marketing Strategy

Canadian regulators have published guidelines for crypto trading platforms in meeting the marketing, advertising, and social media compliances requirements.

Jafrin is a cryptocurrency journalist/researcher fascinated by the world of decentralization. She is hopeful towards blockchain’s innovation and its potential to reshape the world for good. Currently, she is bringing out the best of cryptosphere via covering the latest ins and outs of the blockchain space.

Canadian Regulators Warn Crypto Platforms on Marketing Strategy

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