Canada’s top securities regulator is raising concerns about an alarming increase in cryptocurrency scams, with fraudsters now leveraging sophisticated artificial intelligence (AI) deepfakes and fake trading platforms to deceive investors and steal their money. During an annual event, Grant Vingoe, CEO of the Ontario Securities Commission (OSC), warned that the country is witnessing a rise in scams, insider trading, and corruption, all fueled by a climate where traditional norms are increasingly disregarded.
Vingoe attributed this surge in fraud to global instability, which has created an environment where malicious actors thrive. The unpredictability of geopolitical events has given rise to opportunities for fraud, with victims reporting losses amounting to nearly $640 million in 2024, according to data from the Canadian Anti-Fraud Centre.
Bonnie Lysyk, the OSC’s executive vice-president of enforcement, stated that the commission is now focusing on “high-impact cases,” aiming to implement additional strategies to disrupt fraudsters earlier in the process. Lysyk emphasized that the crypto sector remains highly vulnerable to fraudulent activity, prompting the OSC to take swift action.
In response to growing concerns, Canada began tightening crypto-related regulations in February 2023. The Canadian Securities Administrators (CSA) mandated that all crypto trading platforms operating in the country sign legally binding pre-registration undertakings, alongside existing restrictions. This includes prohibitions on margin trading for Canadian users and limits on offering stablecoins or value-referenced crypto through contracts without prior approval.
The OSC’s efforts to strengthen crypto regulations come amid a rapidly evolving market, as new tools and technologies like deepfakes make it easier for fraudsters to deceive investors, raising the stakes for all involved.
Source: Swifteradio.com
