Crypto Scams Surge in Canada, AI Tools Exploit Investors
The Ontario Securities commission (OSC) warns that crypto-related fraud is on the rise in Canada. Scammers are using advanced AI tools to deceive investors.
Grant Vingoe, CEO of the OSC, highlighted this issue during an annual event.He noted that the current environment is ripe for scams, fraud, and corruption. The unpredictability of global politics is partly to blame, creating opportunities for wrongdoers.
In 2024, victims reported nearly $640 million in losses, according to the Canadian Anti-Fraud Center. To combat this, Bonnie Lysyk, the OSC’s enforcement chief, plans to focus on high-impact cases. The goal is to disrupt harmful activities early.
Canada started tightening crypto regulations in February 2023. The Canadian Securities Administrators (CSA) required all crypto platforms to sign pre-registration agreements.This added to existing restrictions, like banning margin trading for Canadian users.
Some stablecoins are considered securities or derivatives by the CSA. Exchanges can’t offer these without approval,making compliance tough for many platforms.
Key points include:
- AI tools are used in crypto scams.
- Canada lost $640 million to crypto fraud in 2024.
- New regulations aim to protect investors.
