The Canadian Securities Administrators (CSA) and its members are warning investors to be wary about crypto websites claiming to have affiliation with dispute resolution organizations. While these sometimes appear to be legitimate, they say the claims should be checked by searching for the organizations to see if they are ever mentioned in news articles or in reference by a reputable entity.
“In an effort to appeal legitimate, the purported trading service providers claim they are certified by a fictitious authority or that they are members of a dispute resolution organization. One of them says its fictitious certification makes it a reliable and trustable online trading platform. Some of the purported trading services’ websites include links to these fake regulatory or dispute resolution organizations, which have their own websites,” the CSA writes.
“The websites appear to be credible at a first glance, with references to complaint processing, dispute resolution and providing redress to aggrieved investors.” They add the websites make reference to real places, but the language used, on closer inspection, can appear awkward and unpolished – red flags they say investors should make note of.
The statement concludes, urging investors to consult the list of crypto trading platforms that are registered with the CSA.