Canadian regulators unveil advertising and social media guidelines for bitcoin exchanges

Canadian regulators unveil advertising and social media guidelines for bitcoin exchanges

The Canadian Securities Administrators (CSA) and the Investment Industry Regulatory Organisation of Canada (IIROC) have released guidance for cryptocurrency exchanges on the use of social media and advertising and marketing.

The document provides guidance regarding:

  • statements in advertising and marketing materials that could be considered false or misleading;
  • contests, promotions or "gambling-style schemes" (offering bonuses or rewards based on trading levels);
  • the use of social media to promote cryptocurrency exchanges;
  • Compliance with securities laws in general.

"We are concerned that some of these strategies may inappropriately encourage investors to trade excessively risky," the guidance said.

The authors recalled that registered industry participants play an important role "as overseers of the integrity of capital markets". They must not, through their actions or omissions, "encourage behaviour that would harm the reputation of the market", the regulators said.

In April, the CSA and IIROC published a regulatory framework for cryptocurrencies' compliance with regulatory requirements. The guidelines provide a framework for managing risks associated with digital assets, including transparency, pricing, insurance and custody standards.

Earlier, Canada updated the rules for verification of cryptocurrency holders.

Recall that in August, the Ontario Securities Commission banned two regulated cryptocurrency exchanges - Wealthsimple and Coinberry - from operating with Tether's USDT stablecoin.

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I have collected the best-rated crypto exchanges that were approved as the safest platforms. Fees when buying and selling which cryptocurrency.

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