Alert! Crypto Frauds Claim Fake Regulatory Approvals in Canada

• The Canadian Securities Administrators (CSA) released an investor alert warning citizens about crypto exchanges claiming false certification from fake regulatory authorities.
• These websites have links to fake regulatory bodies or dispute resolution entities, with addresses of real locations but awkward and unpolished language and grammar errors.
• The CSA urged investors to conduct their own checks before investing in a crypto exchange claiming to be regulated or belonging to a dispute resolution organization.

Canadian Regulator Warns Against Crypto Companies with Fake Approval

The Canadian Securities Administrators (CSA) has issued an investor alert warning citizens about crypto exchanges claiming false certification from fake regulatory authorities. These websites have links to fake regulatory bodies or dispute resolution entities, with addresses of real locations but awkward and unpolished language and grammar errors.

Fictitious Regulatory Bodies and Dispute Resolution Entities

The CSA listed 10 regulatory or dispute resolution bodies labeled as “fictitious”, such as International Financial Market Supervisory Authority, Financial Standard Commission FSC Canada, Blockchain Association, International Regulatory & Brokerage E-markets, European Financial Services and Exchange Commission, and Crypto Commission Authority/Crypto Commission Ltd. The regulator warned that other fake organizations could spring up “at any time”.

Regulated Cryptocurrency Platforms in Canada

So far, only 12 crypto companies have received authorization from the CSA to service Canadian users, including Coinsquare, Bitbuy, Coinberry, VirgoCX, Newton Crypto ,and Fidelity Digital Asset Services. 11 firms have also filed pre-registration undertakings mandated by the CSA which include Coinbase Canada , Gemini , ByteX Financial ,and Payward Canada . On the other hand , there has been an increase in crypto firms withdrawing from Canada such as OKX , Paxos , Binance , Bybit ,and dYdX .

Investment Advice for Canadians

The CSA urged investors to conduct their own checks before investing in a crypto exchange claiming to be regulated or belonging to a dispute resolution organization. Citizens are encouraged not take investment advice at face value without verifying it first.

Conclusion

In conclusion , Canadians are advised not trust unregulated cryptocurrency platforms claiming falsely certified approvals by non-existent bodies . Investors should do due diligence when considering using these services so as not get scammed into losing their hard earned money .