Canadian Securities Administrators warn of fake regulatory claims by crypto firms.

The Canadian Securities Administrators (CSA) have reported that there has been a rise in the number of crypto companies falsely claiming to be authorized to offer their services in Canada.

According to the authorities, several companies have claimed to be affiliated with fake regulatory or dispute resolution organizations.

Fraudulent regulators backing up fraudulent crypto firms

The purpose of these false claims is to make the trading services appear legitimate.

One company even claimed to own a certificate making it “a reliable and trustable online trading platform,” but upon closer inspection, it was discovered that the certification was completely fake.

Other companies have even put links on their websites that lead to fake regulatory or dispute resolution organizations.

These fake regulators have created their own websites with the single goal of tricking users.

The CSA has compiled a list of fake regulatory and dispute resolution organizations, including the following:

  • Financial Commission/Finacom PLC Ltd.
  • Financial Standard Commission FSC Canada
  • Crypto Commission Authority/Crypto Commission Ltd.
  • Blockchain Association (U.K. and Hong Kong – https://blockchainassociation.io/ )
  • International Financial Market Supervisory Authority
  • European Financial Services and Exchange Commission
  • British Investment Commission/BIC PLC Ltd.
  • Crypto Conduct Authority/Crypto Frugal Ltd. (Ireland)
  • International Regulatory & Brokerage E-markets
  • Crypto Conduct Authority/Crypto Frugal Ltd. (U.K.)

These websites were designed to seem credible at first glance, and even have references to fake complaint processing and dispute resolutions.

The addresses listed on these websites also reference real locations, such as Buenos Aires’ Plaza de Mayo or London’s Canary Wharf.

However, upon closer inspection, the language used on these websites is unpolished and filled with syntax, grammar, or spelling errors, which is a common red flag found in scammer-made emails and fake online pages.

Authorities warn: This is not the full list

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 most likely fraudulent.

Furthermore, the fake organizations listed above are only the ones that Canadian authorities have managed to identify so far.

It is possible that the list is not complete, and new fraudulent organizations might emerge now that the old ones have been identified.

Finally, many self-regulatory organizations and national regulatory agencies exist in the investment market, which can make it difficult to spot the fraudulent ones among so many real ones.

One way to identify legitimate trading platforms is by checking whether they are members, associate members, or affiliate members of the International Organization of Securities Commissions, which is a real organization that includes multiple CSA members in its ranks.

Do your research for your own safety

Those who wish to use crypto companies in Canada should try to independently verify whether the platform is regulated and then check whether the regulator is real.

The authorities warn that users should not simply rely on the organizations’ websites, but should instead look for news articles, official documents, or anything similar issued by established, trustworthy sources referencing the crypto business.

Finally, those who wish to invest in cryptocurrencies should stick to legitimate trading platforms registered with the CSA. Fraudulent platforms often try to offer a better deal to attract investors, so if the deal seems too good to be true, it likely is.

While these measures cannot eliminate all the risks entirely, they can help investors protect themselves from crypto scammers who employ this type of scam.

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