The Canadian Securities Administrators (CSA) and Investment Industry Regulatory Organization of  Canada (IIROC) published guidance on Sept. 23 that aims to help crypto trading platforms understand and comply with requirements under securities law and IIROC rules for advertising, marketing and social media use. 

The regulators say they have noticed a recent increase in advertising and marketing by crypto trading platforms. In several cases, CSA and IIROC staff have observed statements in crypto trading platforms' advertising and marketing materials that could mislead investors. They are also concerned about crypto trading platforms' use of gambling-style promotions that may encourage excessive and risky trading by retail investors. 

"Misleading advertisements and improper marketing strategies may encourage investors to take on risks they would normally avoid, and not respecting the requirements under securities law and IIROC rules may raise concerns about a crypto trading platform's fitness for registration," stated Louis Morisset, CSA Chair and President and CEO of the Autorité des marchés financiers

The guidance can be found on CSA members' websites and on IIROC's website.