Canadian Regulator Warns Crypto Firms Against Dubious Dispute Resolution Entities

The Canadian Securities Administrators (CSA) is warning digital assets firms of invasive resolution entities offering fake dispute resolution. They have invaded the crypto space by portraying several providers appear legitimate.

CSA advises Canadian citizens in authenticating the providers of crypto trading services. CSA asserts that several crypto firms rely on fictitious regulatory entities to boost credibility.

Dubious Organizations Granting Fake Certification

The June 20 Investor Alert issued by CSA decried the trend where crypto trading and exchange platforms allege securing approval granted by dubious authorities. Also, the entities purport to resolve disputes to make them appear legitimate. 

The CSA statement revealed that the websites portray credibility, particularly by capturing references to dispute resolution. They capture references of redress to the aggrieved investors.

CSA indicates that closer scrutiny of the language deployed by the websites appears disjointed and unpolished. CSA holds that spelling errors, syntax, and grammar constitute the red flags that illegitimatize the entities. 

AI Trading Robot

The CSA identified ten entities citing their fictitious nature. The statement considers the Financial Standard Commission FSC Canada is orchestrating the fictitious activities alongside Blockchain Association. The notice issued by CSA emphasized that the ten entities are unknown. Also, it held that organizations claiming to have such capacity are fraudulent. 

Blockchain Association Disputes Fraudulent Label

Blockchain Association chief operating executive Nikolai Isayev downplayed the CSA classification. He revealed they dispute the content captured in the notice and emphasized that the Canadian regulator erred. 

The Blockchain Association executive confirmed the entity engaged Canadian legal counsel to submit a petition for CSA to drop the designation. Isayev anticipates the issue resolution to take a shorter time. 

Isayev revisited the Blockchain Association journey beginning in 2018 with the entity establishment. Its origin targeted uniting professionals operating within the blockchain ecosystem. He reiterated that the entity aims at developing best practices to utilize blockchain technology and resolve disputes arising among crypto traders. 

Blockchain Association Warns of Online Scams Cloning Genuine Certification

Isayev demonstrated that a handful of employees run the Blockchain Association. He confirmed that the organization had not offered services for the past 24 months. He confirmed that the entity is in a dormant state. 

Isayev admitted that the Blockchain Association has, in the past quarters, discovered unknown persons cloning or copying the membership certificates in the pursuit of fraudulent activities. The operation head considered such evidence of online scams. He confessed that the firm is actively involved in consistently identifying and warning the public. 

Cointelligence Considers Blockchain Association Introduction as Casual

 In his capacity as the Cointelligence, Yavin is incapable of commenting on the content of the CSA notice concerning the contents of the to give comment about inclusion in the list of fraudulent firms. He ruled out engaging or communicating with the Blockchain Association beyond the casual introduction to Isayev back in 2019.

Yavin recalled that Isayev, in 2019, reached out seeking Cointelligence collaboration with the entity as a partner. Besides, Isayev utilizes Cointelligence’s educational materials and content with the Blockchain Association audience.

Independently Authenticate Certified Membership of Approved Crypto Platforms

The CSA instructed parties using crypto firms claiming certified membership to dispute resolution should independently authenticate that the referenced entity exists. 

The regulator urged citizens to scrutinize firms against the list of approved entities issued by the CSA. The Canadian regulator added that it had approved 12 platforms to execute digital assets trading. It added that another 11 had submitted preregistration undertakings.

The CSA’s statement hardly commits to addressing the elimination of fraudulent certifications. Nonetheless, the statement acknowledges that crypto firms lack awareness of fake certifications. The certification listing hardly translates to a fraudulent platform. 

The CSA classified Crypto Frugal Ltd in Ireland and UK among the fake entities of the International Financial Market Supervisory Authority and International Regulatory & Brokerage E-markets, Crypto Commission Authority, and British Investment Commission. 

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