Beware of Fake Regulatory Claims by Crypto Firms, Warns Canadian Securities Administrators

cryptonews.com:

Canada’s crypto sector has seen a rise in the number of companies that falsely claim to be authorized to offer their services in the country, according to the Canadian Securities Administrators (CSA). 

The authorities stated that several firms claimed to be affiliated with fictitious regulatory or dispute resolution organizations.

The false claims aim to make the purported trading services appear legitimate. 

One of them claimed to own a certificate that makes it “a reliable and trustable online trading platform.” However, upon closer inspection, it was determined that the certification was entirely fake.

Others have even put links on their websites, leading to fake regulatory or dispute resolution organizations. 

The fake regulators have their own websites, made with a single goal: to trick the users. 

Canadian authorities have posted a list of fake regulatory and dispute resolution organizations, including the following:

The websites were set up to seem credible at first glance. They even have references to fake complaint processing and dispute resolutions. 

The included addresses also reference real locations, such as Buenos Aires-based Plaza de Mayo or London’s Canary Wharf.

However, closer inspection reveals that the language used on the websites is unpolished, filled with syntax, grammar, or even spelling errors. 

This is a common red flag that can be found in scammer-made emails and fake online pages.

The authorities advise investors – especially those interested in cryptocurrencies – to remember several key pieces of information. 

First, none of the organizations on the list above are known regulators or real dispute resolution organizations. 

Any entity claiming to be approved or regulated by the mentioned organizations is