Crypto firms tout 'fictitious' regulatory stamps, Canadian regulator warns
Canadian citizens are being advised to double-check crypto trading service providers as they may be using “fictitious” regulatory bodies to boost their credibility.
According to a June 20 Investor Alert from the Canadian Securities Administrators (CSA) some “purported” crypto platforms are claiming to be approved by certain regulatory authorities or dispute resolution organizations in “an effort to appear legitimate.”
“The websites appear to be credible at first glance, with references to complaint processing, dispute resolution and providing redress to aggrieved investors,” the CSA said in a statement.
Investor Alert: Some crypto websites use fake regulatory and dispute resolution organizations to appear legitimatehttps://t.co/Ptqx3RHjfg pic.twitter.com/2QIpwnJdcB
One such website even said its “fictitious certification makes it ‘a reliable and trustable online trading platform,’” according to the CSA, adding:
Some “fictitious” regulatory bodies and organizations, as listed by the CSA, include the Financial Standard Commission FSC Canada, Financial Commission/Finacom PLC Ltd., and its associated entity — Blockchain Association.
The CSA claims none of the listed entities are “known,” while also suggesting any entity claiming to be a member of the organizations is “likely fraudulent.”
Cointelegraph found a list of crypto firms that are touted as members of the “Blockchain Association” on its website — the entity is one of the dispute resolution organizations the CSA accused of being illegitimate.
Cointelegraph contacted Etheralabs, Gallant Exchange, SmartDec, StormGain, YouHodler and Finacom PLC Ltd., Cointelligence and Asia Blockchain for comment but did not receive a response by the time of publication.
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