Canadian crypto exchange raises domestic issue with Blitz
Categories: Crypto News
Some cryptocurrency trading platforms registered and regulated in Canada are raising concerns about marketing tactics employed by certain foreign companies that are inappropriate by domestic securities agencies.Crypto.com’s regulatory status in Canada is questionable: it is not officially registered as a crypto trading platform with any provincial or territorial securities regulator, even though it advertises in this country and via its mobile app. Provides crypto trading services to Canadians.Canadian securities regulators issued advertising guidelines for crypto companies, warning them against deceptive advertising and promotional tactics that could potentially entice investors into making risky trades. The Canadian Securities Administrators, the umbrella group of provincial and regional securities commissions, issued guidelines on how to regulate crypto exchanges. The CSA determined that these businesses are essentially securities dealers because they facilitate trading.CoinSmart and five other companies that provide crypto trading services – Wealthsimple, Coinberry, Netcoins, Fidelity and Bitbuy – are all registered with securities regulators in provinces and territories. “We really appreciate Crypto.com to the world as their megamillion marketing deals are creating awareness and mainstream acceptance for the entire category across the Granthshala,” said Mr. Arbus. “That being said, it is hard for Canadian crypto companies to compete with these unregulated multinational platforms, such as Crypto.com, and with their large marketing budgets on our home soil. This makes it difficult for these international platforms to market a lot of coins and products. which our Canadian regulators would never approve if they were licensed.”In a recent interview with The Granthshala, Steve Kalifowitz, chief marketing officer of Crypto.com, said that the company’s partnership with Canadiens — a one-year deal signed in March 2021, that includes branding on ice at the Bell Center — was beneficial. The company because of how far the Canadiens advanced in last year’s Stanley Cup playoff. The company embarked on a marketing blitz in 2021, signing advertising deals with high-profile sports associations such as the NBA, Formula One, the UFC, and several soccer leagues, including Italy’s Serie A.In November, Krypto.com acquired the naming rights to the Staples Center in Los Angeles, which is now the Krypto.com Arena, home to four professional sports teams including the NBA’s Los Angeles Lakers and Los Angeles Clippers and the NHL’s Los Angeles Kings. . , The Washington Post and several other media outlets reported that the deal was valued at US$700 million. The company has reportedly spent more than US$100 million on TV commercials starring Matt Damon that aired in more than 20 countries. Mr. Arbus, CEO of Bitbay, said he expects entities that enter into advertising contracts with crypto companies to do their due diligence to determine whether that advertiser is legally able to offer its services to Canadians. “We hope they are thinking about crypto advertising with the same level of care as they would any other product or service.”