Posted by & filed under Bitcoin, crypto-currency, IT and Politics, Politics.

 The amount of money invested worldwide in cryptocurrencies, such as bitcoin, reached $2 trillion in April, more than the total value of Canadian mutual funds and exchange-traded funds.

Getting sick of those cryptocurrency ads that have all the grace and subtlety of carnival barkers or neon signs on the Vegas strip? So are securities regulators.

The Canadian Securities Administrators and Investment Industry Regulatory Organization of Canada (IIROC) announced new advertising, marketing and social media guidelines for cryptocurrency exchanges Thursday.

Ontario Securities Commission chair Grant Vingoe said the goal of the guidelines is simple: Keeping investors safe in a rapidly-growing sector where there’s something of a wild-west atmosphere.

“The biggest focus is investor protection,” said Vingoe.

Those “quickest one to 500 trades gets a bonus” ads or “click here and invest before the price goes up” tweets? Big no-nos. Ditto for the ones saying an exchange is the safest one around, without any proof. And above all, any advertising will have to mention the volatility and risk inherent in the entire cryptocurrency sector.

Source: Toronto Daily News

Date: September 24th, 2021

Link: https://www.thestar.com/business/2021/09/23/canadian-investment-watchdog-hopes-advertising-guidelines-will-rein-in-cryptocurrencys-wild-west-bad-actors.html

Discussion

  1. What are some of the fundamentals underlying the price of bitcoin and many other crypto-currencies (answer: nothing!)
  2. Why is important for regulators to protect investors in cryptocurrencies like bitcoin?

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