Regulators in Canada introduce guidelines for bitcoin exchanges
The Canadian Securities Administrators (CSA) and the Investment Industry Regulatory Organization of Canada (IIROC) have released guidance for cryptocurrency exchanges on the use of social media as well as advertising and marketing.
The document provides guidance regarding:
We are concerned that some of these strategies may inappropriately induce 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 the capital markets." They should not, through their actions or inactions, "promote behavior 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 guidance provides a framework for managing risks associated with digital assets, including transparency, pricing, insurance and custody standards.
Earlier, Canada updated the rules for verifying 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.