The Canadian Securities Administrators (CSA) has warned investors that trading in crypto assets is a high risk move that may not be suitable for many, especially retail investors, due to the extreme volatility in value and liquidity.
The financial watchdog reminded consumers that a number of unregistered crypto asset trading platforms remain accessible to Canadians, but these may lack essential safeguards that protect investors’ assets from loss, theft, or misuse.
“Crypto asset trading platforms that operate in Canada and trade securities or derivatives are required to comply with Canadian securities law requirements, including registering with securities regulators. While this regulatory oversight plays an important role in investor protection, investors should know that registration cannot eliminate all risks associated with crypto asset trading platforms”, the official statement said.
Trading crypto assets requires considerable time, skill and research
Calling it a form of do-it-yourself online investing, the CSA told investors that trading crypto assets requires considerable time, skill, and research, which could eventually be delegated to a registered investment advisor whose advice may point to other options for investing in crypto.
The CSA is the council of the securities regulators of Canada’s provinces and territories and coordinates and harmonizes regulation for the Canadian capital markets.
In particular, fraudsters continue to capitalize on market interest…
