- The Canadian Securities Administrators has alerted Canadian citizens for using crypto trading service providers, as they are being fictitious.
- Service providers look legal but they are just pretending to be credible.
Canadian citizens are warned that many crypto trading service providers look like they are trustworthy because they show fictitious regulatory bodies to enhance their validness.
An investor alert by Canadian Securities Administrators (CSA) was made on June 20, 2023 where Canadians were informed that some reputed firms in order to look legal, are claiming to be approved by certain regulatory authorities or dispute resolution organizations.
CSA Said Fake Regulatory Certificates Increases Reliability
The CSA said fictitious certificates make trading platforms look more reliable. Furthermore, some reputed firms are using links to these fake regulatory or dispute resolution organizations who have their own websites.
The list of fake regulatory organizations is provided which includes Financial Standard Commission FSC Canada, Financial Commission/ Finnacom PLC Ltd., Blockchain Association, European Financial Services and Exchange Commission, Crypto Conduct Authority/ Crypto Frugal Ltd., and some others.
Other notifying things include the website which appears to be reputed at first instance. It is filled with references to complaint processing, issues resolutions, and rectification of the problems arised by investors, thereby, increasing trustability. Even the real location address increases the belief of the user.
But, closer observation reveals the authenticity. The language can be immature and unrefined, spelling and grammatical errors are some factors arising the alert. CSA also added that although the list of some fake regulators are provided, there may be some others which have not appeared and yet to be notified.
Briefly there are 12 crypto trading platforms authorized to work in Canada, and 11 organizations have filled pre-registration undertakings.
Basic Research About Crypto Provider Will Enhance Safety
To be on the safer side, just do not rely on the regulatory websites but also perform basic research like whether the organization is mentioned in news or referred by any other well known entities. Basically, do check the organization name with the fake regulatory list provided by CSA.
There is a list of firms who are members of the blockchain association, the entity is one of the fake regulatory authorities that CSA charged with being illegal. In a statement, CSA said anyone using a crypto firm claiming to be certified or a member of a dispute resolution organization should independently claim that the organization they are claiming really exists.
Hence, it is advised to Canadians to double check before using the facilities of crypto trading services. There are a few who use fictitious or fake regulatory bodies certificates to enhance their trustability.
The user should stay alert by following the list provided by CSA, and also by closely examining their website, and their reputation with other well known entities.
The fictitious authentication of trusted trading platforms will be clearer by staying alert and observation. CSA’s certified list of companies will definitely help before investing in crypto.