CSA Advise Canadians to Ask Questions before Investing in Cryptos
The Canadian Securities Administrators (CSA) has issued a warning
on Friday targeting crypto investors who remind them to do their own diligence
when researching this kind of investment. According to the CSA, Canadians
should ask questions before investing in crypto assets.
The following questions were suggested by the authority when
assessing the suitability of a crypto investment: “Does investing in this
crypto asset align with my financial goals and time horizon? Do I understand
what I am investing in? Can I afford to lose the money I’m willing to invest in
crypto assets? Am I investing for the wrong reasons, such as fear of missing
out, urgency from others, promises of guaranteed returns, exclusive offers and,
supposed cutting-edge investment opportunities? Have I considered the high-risk
nature of investing in crypto assets and whether it fits my investor profile? Is
the crypto asset I am considering deemed a security or derivative and subject
to securities law? Does the crypto asset trading platform I plan to use hold
custody of my crypto assets? Is it registered to do so?”
TikTok Campaign Also Deployed by the CSA
Also, the warning came accompanied by a bilingual campaign
launch on TikTok by the CSA that encourages Canadian investors to ask
themselves these questions in order to avoid any fraud whatsoever.
“The crypto landscape is evolving and complex. Fraudsters
capitalize on market interest as well as a lack of knowledge in crypto assets
to lure both sophisticated and potential investors into scams that can lead to
devastating losses,” Louis Morisset, CSA Chair and President and CEO of the
Autorité des marches financiers, commented.
He added: “Asking questions, conducting research about
potential crypto opportunities, and making sure you deal with registered
platforms are among the best ways to protect yourself from potentially
fraudulent investment activities.”
The Canadian Securities Administrators (CSA) has issued a warning
on Friday targeting crypto investors who remind them to do their own diligence
when researching this kind of investment. According to the CSA, Canadians
should ask questions before investing in crypto assets.
The following questions were suggested by the authority when
assessing the suitability of a crypto investment: “Does investing in this
crypto asset align with my financial goals and time horizon? Do I understand
what I am investing in? Can I afford to lose the money I’m willing to invest in
crypto assets? Am I investing for the wrong reasons, such as fear of missing
out, urgency from others, promises of guaranteed returns, exclusive offers and,
supposed cutting-edge investment opportunities? Have I considered the high-risk
nature of investing in crypto assets and whether it fits my investor profile? Is
the crypto asset I am considering deemed a security or derivative and subject
to securities law? Does the crypto asset trading platform I plan to use hold
custody of my crypto assets? Is it registered to do so?”
TikTok Campaign Also Deployed by the CSA
Also, the warning came accompanied by a bilingual campaign
launch on TikTok by the CSA that encourages Canadian investors to ask
themselves these questions in order to avoid any fraud whatsoever.
“The crypto landscape is evolving and complex. Fraudsters
capitalize on market interest as well as a lack of knowledge in crypto assets
to lure both sophisticated and potential investors into scams that can lead to
devastating losses,” Louis Morisset, CSA Chair and President and CEO of the
Autorité des marches financiers, commented.
He added: “Asking questions, conducting research about
potential crypto opportunities, and making sure you deal with registered
platforms are among the best ways to protect yourself from potentially
fraudulent investment activities.”
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