Canada: CSA Cautions Investors to Only Buy Crypto from Registered Crypto Trading Platforms

As part of a broader warning, the Canadian Securities Administrators (CSA) has cautioned investors to only buy digital assets, or crypto, via registered crypto trading platforms or “CTPs”.

Canada has instituted a registration regime for crypto exchanges to provide a level of diligence and security for Canadian investors. The CSA is the association that represents all of the provincial or territorial securities regulators, as there is no federal securities agency.

The CSA has released a statement advising investors to be cautious about who, or where, they get investment advice, telling people not to be “Finfluenced” when making investment decisions. In the not-so-distant past, especially in crypto, social media influencers were frequently used to promote or pump offerings. It did not matter that these influencers had no idea what they were talking about and were typically paid for the promotion because it helped increase the exposure of crypto offerings – frequently to the detriment of unsophisticated investors.

“In our rapidly evolving financial landscape, it is easier than ever to reach the masses through Artificial Intelligence, social media, and other digital tools, and anyone can present themselves as a financial expert so it’s critical that investors verify the credibility of information sources,” explains Stan Magidson, CSA Chair and Chair and CEO of the Alberta Securities Commission.

The CSA advises you verify sources of information and work with registered professionals who have some actual experience in securities. As for crypto, the CSA states:

“Canadians considering buying or selling crypto assets should use platforms registered with Canadian securities regulators. Platforms that do not comply with Canadian securities laws may be fraudulent or lack investor protections that may exist with a registered platform. Crypto assets, regardless of the platform you use, are high-risk investments.”


Register Now!
Sponsored Links by DQ Promote



Send this to a friend