Canadian Regulator Warns Against ‘Fictitious’ Regulatory Stamps Used by Crypto Firms

Canadian Securities Administrators Warn of Crypto Platforms Claiming Bogus Regulation

Canadians are being warned to carefully examine crypto trading service providers, as some of these platforms may be claiming to be regulated by bogus authorities in order to increase their trustworthiness.

The Canadian Securities Administrators issued an Investor Alert on June 20th warning investors that certain crypto platforms are falsely claiming to have been approved by regulatory authorities or dispute resolution organizations in order to appear legitimate.

At first sight, the websites look reliable, referring to handling of complaints, settlement of disputes and granting compensation to aggrieved investors, the CSA noted in a declaration.

The CSA noted that one website even claimed its “fictitious certification” made it “a reliable and trustworthy online trading platform.”

The Canadian Securities Administrators (CSA) lists some “fictitious” regulatory bodies and organizations, such as the Financial Standard Commission FSC Canada, Financial Commission/Finacom PLC Ltd., and its related entity, the Blockchain Association.

The CSA asserts that none of the entities listed are recognized, and that any entity claiming to be affiliated with the organizations is likely a scam.

Cointelegraph uncovered a roster of crypto companies that are promoted as members of the “Blockchain Association” on its website – the entity is one of the dispute resolution bodies that the CSA denounced as being illegitimate.

Cointelegraph attempted to get comment from Etheralabs, Gallant Exchange, SmartDec, StormGain, YouHodler, Finacom PLC Ltd., Cointelligence and Asia Blockchain, but no response had been received by the time of publication.

The CSA warned in a statement that anyone contemplating utilizing a crypto firm that asserts to be accredited or a part of a dispute resolution association should make an effort to independently confirm that the mentioned organization actually exists.

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The regulator also suggested that people thinking about investing in crypto should compare the companies to those that are registered with the CSA. Currently, 12 crypto trading platforms are permitted to operate in Canada, and 11 have submitted pre-registration agreements.

Although the regulator’s pronouncement does not explicitly mention this, it is worth noting that the crypto businesses themselves may have been deceived by the “fraudulent” certifications, and the inclusion of a certification does not necessarily imply that the platform is untrustworthy.

The CSA has accused the following regulatory bodies and entities of being “fake”:

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