Canada’s CSA Releases Marketing Guidelines for Crypto Exchanges

The Canadian Securities Administrators (CSA), together with the investment industry’s self-regulatory body, have released new guidance on cryptocurrency exchanges’ use of social media and advertising and marketing.

The document “provides guidance to crypto trading platforms on how the rules of securities legislation1 and the IIRO regarding advertising, marketing, and use of social media may apply to them.”

The guidance covers the types of language used by exchanges and warnings against certain forms of fraud, and specifically targets so-called "gambling-style promotions." "We are concerned that some of these strategies may inappropriately encourage investors to engage in excessively risky trades and take risks that they would normally avoid," the notice said.

We wish to remind crypto trading platforms that registered dealers play an important role as gatekeepers to the integrity of the capital markets. They should not, through action or inaction, engage in or facilitate conduct that brings the markets into disrepute.”