Submitted by nsscadmin on
By Surbhi Sharma
Before I began working at the Nova Scotia Securities Commission (NSSC), my understanding of securities and investing was fairly basic. I knew the fundamentals of buying and selling stocks, but, working at NSSC provided me a deeper understanding of different types of securities such as stocks, and exchange-traded funds (ETFs), how securities are regulated in Canada and some common crypto frauds that have been on the rise in Nova Scotia.
Three significant things I didn’t know about securities and investing before joining NSSC.
1. The depth of regulatory oversight on crypto assets:
Before joining NSSC, I had a basic understanding of the risks associated with investing in crypto assets, but I didn’t fully know about the extent of fraudulent activities in this market. During my work-term at NSSC I attended presentations on crypto fraud that highlighted the importance of being vigilant when buying crypto assets and only purchasing them from registered trading platforms.
Crypto fraud can take many forms including Ponzi schemes where fraudsters deceive the unsuspecting investors. NSSC places significant emphasis on educating the public about these risks and advising investors to only buy crypto assets from registered and reputable sources. You can find an updated list of registered crypto asset trading platforms on NSSC’s website.
2. Securities are regulated provincially and not federally:
In Canada, securities are regulated provincially and territorially rather than federally. The provincial regulation of securities means that each province and territory can have its own rules and oversight mechanisms to better fit its local market needs. For example, NSSC’s mandate is to provide investors with the protection from practices and activities that undermine investor’s confidence in the fairness and efficiency of capital market. Though securities are regulated provincially and territorially, the Canadian Securities Administrators (CSA) was established as an umbrella organization to foster cooperation between the provincial and territorial regulators and harmonize securities regulations among provinces wherever possible.
3. Nova Crypto website campaign educates investors about fraudulent crypto assets trading platforms:
NovaCrypto.ca was created by the NSSC to teach and inform Nova Scotia investors about unregistered fraudulent crypto trading websites. The aim of NovaCrypto.ca is to increase awareness of these fraudulent sites and to help investors learn how to recognize them and avoid them to protect themselves. The NovaCrypto website uses text and language that was taken from actual fraudulent websites and highlights some red flags investors can watch for to help identify them. Any link on NovaCrypto.ca used to create an account or download an app will direct the user to NSSC’s website which is full of educational information to protect investors.
Now that you know about the three interesting things, I’ve learned working with NSSC I would like your help to share this information with everyone in Nova Scotia. It is important for Nova Scotians to be vigilant against investment fraud and have a basic sense of how the regulation of securities in Canada is structured. The best protection against investment fraud, or any type of fraud, is education. The more people that know about fraudulent crypto trading platforms and how to recognize them, the fewer will end up losing money to them.