The Canadian Securities Administrators, or CSA, and Investment Industry Regulatory Organisation of Canada, or IIROC, have issued guidelines for crypto trading platforms operating in the country to avoid "advertising and marketing materials that could mislead investors."

In a Th publication, the Canadian regulators' guidelines warn crypto companies non to advertise "gambling style" promotions in which an investor is encouraged to sign upwardly within a given fourth dimension limit to have reward of a reward or opportunity. Though the guidance was seemingly vague on restrictions apropos social media posts, the regulators recommended trading platforms designate an individual to review and approve communications and prepare a system to ensure all messages are in compliance with regulatory guidelines.

"Misleading advertisements and improper marketing strategies may encourage investors to take on risks they would normally avert, and not respecting the requirements under securities constabulary and IIROC rules may raise concerns nearly a crypto trading platform'south fettle for registration," said CSA chair Louis Morisset.

Some of the seemingly egregious examples provided by the regulators included exchanges suggesting that they are registered under current securities laws or otherwise approved by regulators. The CSA and IIROC encouraged trading platforms to consult with their legal teams prior to releasing advertising and marketing announcements to the public.

Related: UK advertising watchdog classifies crypto ads as 'red alert'

The IIROC is a self-regulatory body that proposes measures to protect investors and back up healthy domestic capital markets while the CSA is a national standards group roofing Canada'due south ten provinces and three territories. The two securities bodies have previously issued joint statements regarding rules on crypto manufacture players and worked together to clarify the use of crypto with the country'south securities laws.