Crypto -related fraud is booming in Canada, because crooks are increasingly using AI tools to target investors, the Ontario securities commission said.
The Canada’s securities watchdog sounds the alarm on a wave of cryptographic scams, saying that fraudsters are now using artificial intelligence and trading platforms to deceive investors and steal their money.
During the annual event on Thursday, Grant twenty, the chief executive officer of the Ontario securities commission, said that the country was now in an environment “where there are more scams, more fraud, more initiate crimes, more corruption, activated by an atmosphere in which everything that happens and traditional standards are not observed as in the past”, reports of the globe and mail.
Twenty has linked the increase in fraud to broader instability, because “the unpredictability of the geopolitical environment leads to an environment where people interested in hurting will find a place.” In 2024 alone, the victims reported nearly $ 640 million in losses, according to data from the Canadian anti-fraud center.
Now, Bonnie Lysyk, executive vice-president of the application of the CVC, said that the Commission wishes to focus on “high impact cases”, adding that the Commission wishes to “set up additional strategies to disturb those who harm investors earlier” because the cryptographic space “is mature for fraud”.
Canada began to strengthen cryptography regulations in February 2023 when Canadian securities administrators demanded all cryptographic trading platforms in the country to sign legally binding pre-registration companies. This has come in addition to existing restrictions, in particular the ban on offering margin trading to Canadian users.
Since the CSA considers that certain stablescoins are titles or derivatives, exchanges have also been prohibited from offering stablescoins or crypto referenced by value through contracts without prior approval, which makes it difficult for many cryptographic platforms.
