While the state for cryptocurrencies is fairly favorable in Canada, the rising numbers of crypto scams stand to threaten the future of cryptocurrency in the region. The regulatory authorities of Canada are detecting an unusual increase in cybercrimes, insider trading, scam websites, and malfeasance. According to the regulatory body, the main cause of crime interception is the ongoing pandemic.
The Securities Administrators published their financial report for the fiscal year 2020-2021. The report indicates that as many are 60 unique corporations were charged with legal implications for breaching securities laws and submitting an aggregate fine of $60 million. The CSA filed lawsuits against 52 financial organizations for committing white-collar crimes. According to the report, the number of crimes has increased by 37% in comparison to last year.
Canadian Regulatory Authority Claims that Cryptocurrencies Allow Criminals to Get Away with Financial Crimes
Among the many organizations that are put on trial by CSA, Mercury Crypto Invest is one example. MCI is a digital token that is hosted on the Waves platform. It has a limited supply of 100 million units. However, the CSA officials have claimed that the token was managed by scammers who were trapping more investors by promising a certain return.
It should be noted that any stock or crypto price can go both ways. A cryptocurrency project can’t offer its investors a solid return. The CSA officials further claimed that the scammers were also offering their unsuspecting victims a chance to get rich with binary options and digital assets. For any financial organization, it is not possible to ensure their investors that they would get a return regardless of the market trends.
CSA Chair Told Media that Scammers Take Advantage of the Financial Vulnerability of People During the Pandemic
Louis Morisset is the presiding chairperson at CSA, commenting on the issue of increasing scams and cybercrimes he was speaking to the media. According to Morisset, the scammers are getting smarter, and they take advantage of the increasing financial handicap that the people face. A considerable amount of people have lost their jobs in the pandemic.
On the other hand, a lot of people have resorted to working from home and spent more time online. Morisset further added that out of 150 organized financial crimes, CSA was able to investigate and sue only 64. It seems that the current resources of the CSA are not enough to handle the ever-increasing crypto and fintech crimes. Meanwhile, the Commodities and Futures Trading Commission of the United States (CFTC) approved $188 million whistleblower and informant awards to discourage the companies from taking part in such schemes.