Canada’s CSA Issues Guidance on Crypto-Related Advertising and Marketing

The Canadian Securities Administrators (CSA), the council of the securities regulators of Canada’s provinces and territories, has issued guidance targeting all advertising and marketing campaigns pursued by crypto trading platforms.

CSA saw a recent increase in advertising and marketing by crypto trading platforms, which draws concern from the regulator about crypto trading platforms’ use of gambling-style promotions that may encourage excessive and risky trading by retail investors.

“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,” said Louis Morisset, CSA Chair and President and CEO of the Autorité des marchés financiers.

The guidance published today is intended for registered crypto trading platforms, platforms that have or will be applying for registration and other registrants that may be considering establishing a platform as a new business line.

The publication includes examples of misleading statements in advertising and marketing materials and outlines regulators' compliance and supervisory expectations for firms using social media.

“Crypto trading platforms should consider their advertising and marketing strategies in the context of their obligations to treat clients fairly and honestly,” said Andrew J. Kriegler, IIROC President and CEO. “IIROC will continue to work closely with the CSA to ensure investors are protected.”