As per the latest recent reports, the Investment Industry Regulatory Organization of Canada (IIROC) and the Canadian Securities Administrators (CSA) have grown very active against crypto-advertisements. Both the regulatory authorities have reportedly issued guidelines for advertisements in the cryptocurrency sector.
The guidelines strongly oppose cryptocurrency advertisements and market strategies that are unethical and misleading. Therefore, the guidelines tend to oppose such advertisements and their publishing in Canada.
According to the regulators, most of the advertisements and marketing carried out by the crypto-sector are misleading. Therefore, the investors end up investing in cryptocurrencies that are misleading or are the ones that do not offer the profits claimed in the advertisements.
Therefore, the regulatory authorities have issued strict guidelines and orders that the cryptocurrency trading or related firms must follow and strictly adhere to. According to the regulators, cryptocurrency firms must avoid any kind of marketing or advertising that misleads the investors.
The guidelines surrounding the publishing and release of marketing/advertising material were published on Thursday, September 23, 2021. In the publication, the regulators have made it clear that the crypto-companies must not include promotions that have a gambling-style element in them.
The advertisements that the regulators have mentioned are the ones where investors are told that they would receive a bonus or a reward if they signed up within a given time frame.
According to the guideline reviewers, not much clarity or information surrounding the consequences in case of breaching the guidelines was given. For now, the regulators have demanded that the cryptocurrency firms must adhere to the guidelines and not falter.
The regulators have stated that in order to make sure that no such material or content is advertised, there must be a person available at the particular firm to review such content.
The person has to be well-acquainted with the laws and guidelines provided by the regulators. Only then, the person would be able to review the content and advertisement material and approve it accordingly. The person alongside the platform will be held responsible in case the regulatory guidelines are not adhered to.
According to the regulators, such advertisement is very misleading for the investors as they may end up taking on risks without taking the consequences into consideration. This could also prove to be a very fine strategy for scammers and fraudsters to lure investors and deprive them of their savings/money.
Under normal circumstances, the investors would reject and turn down such advertisements or offers. But the fake bonus and rewards the firms offer to end up making the investors change their decisions.
The regulators have made it clear for the cryptocurrency firms to make sure they do not deviate from the guidelines or they may end up facing extreme consequences.