TrueNorthBit reports – Canadian Authorities Targeting Crypto Firms Making False Claims

London, UK, 2nd Oct 2021, ZEXPRWIRE – Cryptocurrencies are becoming extremely popular among investors around the world. They are being traded on exchanges every second, even though they are still somewhat new to most people. TrueNorthBit Broker Albert Goldman says that while it is indeed true that purchasing cryptocurrencies are now more accessible than ever before, one needs to be aware of all of the risks involved with these digital assets before investing money in them.

One of the major risks associated with cryptocurrencies is the fact that they are unregulated. Even though some countries have tried to regulate cryptocurrencies, the value of these digital assets is not guaranteed by any government. It can be compared to buying stocks since there is a very strong correlation between cryptocurrency prices and other financial markets, including stocks.

Today we have a wide range of cryptos that investors need to be aware of before they start trading. Not all cryptocurrencies do the same thing, which is why it is important for one to research what each type does before purchasing them. 

Risks and Reactions

Since cryptocurrencies are not regulated, investors need to be aware of market volatility risks as well. It cannot be forgotten that these digital assets can face significant price fluctuations at any moment since cryptocurrency prices are linked with other financial markets around the world. As such, there is no guarantee that virtual currencies will continue to have the same value they currently do.

Even though cryptocurrencies may seem like the “new” digital gold rush, investors should always be wary about investing money in these tokens. While it is right that some people have gotten rich off of their investments, others have quickly lost all of the money they put into cryptocurrencies. 

One thing is clear, that no state is ready to accept cryptos without making them safe for national security and regulating them.  Nations are working on creating legal frameworks for their use, but the progress is still small.

Another major risk associated with cryptocurrencies is the fact that they are unregulated. Even though some countries have tried to regulate cryptocurrencies, the value of these digital assets is not guaranteed by any government. It can be compared to buying stocks since there is a very strong correlation between cryptocurrency prices and other financial markets, including stocks.

As with any other financial market out there, the cryptocurrency market is filled with speculators that wish to make some money off of investors. In fact, it has been stated that most cryptocurrencies’ value comes from the highly speculative nature of these digital tokens and not necessarily from their practical uses.

Today the only threat that haunts crypto traders is not only the volatility. In fact, misleading advertisements by crypto exchanges are a huge problem these days.  No matter how many times these are being reported, scammers have still managed to find ways of promoting their sites in order to get people to sign up. Even though some exchanges are taking measures in order to prevent this sort of behavior, it is still not enough.

Canadian authorities in action

In an attempt to address this issue, Canadian Security Authorities have issued clear warnings to the imposter firms that try to trick and trap naive crypto traders. Investment Industry Regulatory Organization and Canadian Security Administrators urge the people to be very careful with these schemes and warn everyone that they will not tolerate such behavior.

The Canadian Securities Administrators (CSA) and Investment Industry Regulatory Organization of Canada (IIROC) also mentioned that cryptocurrency scams try to create a false sense of urgency and need among investors by claiming that they only have limited time for investing. People need to remember that they have all the time in the world of crypto trading and that trying to hurry will only result in a waste of money because such tactics force people to make highly risky investments. 

They have also published a list of false claims that the user needs to be aware of when visiting a fake cryptocurrency exchange. For example, they stated that the ads are using terms like “cheapest source” or “best source of bitcoin”. In addition, Canadian authorities have been advising people not to invest in any company that is not registered with any government authority.  Furthermore, they also urge people to be extremely careful with any companies that 

claim an affiliation with reputable banks or technology firms. 

Mr. Goldman thinks that this is a great measure taken by Canadian Authorities because these false claims can be very harmful, especially when they are aimed at new investors that know little to nothing.

Disclaimer: Our content is intended to be used for informational purposes only.

It is very important to do your own research before making any investment based on your own personal circumstances.

You should take independent financial advice from a professional in connection with, or independently research and verify, any information that you find on this article and wish to rely upon, whether for the purpose of making an investment decision or otherwise.