Researchers at Toronto Metropolitan University have compiled data revealing that 35% of Canadian crypto owners have experienced scams. The findings of their study also establish a concerning link between cryptocurrency ownership and online harassment.
Authors associated with the university have dispelled the misconception that modern-day crypto investors possess enough sophistication to evade scammers.
Based on a nationwide survey in October 2022, the report presents straightforward conclusions that demand immediate action. However, Ottawa must balance stringent enforcement and honoring innovative practices.
Online Abuse Against Canadian Crypto Owners Is Worse
The poll found that 35% of Canadians acknowledged encountering various crypto fraud or scam types. It is noteworthy that the occurrence of such incidents was higher among individuals with lower incomes and less education.
Furthermore, the study reveals a correlation between owning cryptocurrency and experiencing online harassment. According to the survey, almost one in five (19%) cryptocurrency owners encounter online abuse. On the other hand, only 6% of non-crypto owners faced similar situations.
The report highlights that the severity of the abuse was so distressing that those targeted expressed genuine concerns for their safety.
Some may be shocked by the level of fraud. However, crypto owners in Canada believe they are not more susceptible to misinformation than those in other locations.
The new report incorporates a survey conducted in October 2022. It predates the collapse of FTX in November 2022 and the subsequent arrest of its CEO, Sam Bankman-Fried. Concerns about crypto were already significant even before the downfall of FTX, states the report.
The report provides clear recommendations to the Canadian government regarding the crypto-asset space. These recommendations include bringing financial crypto-asset regulation to other Canadian policies and legal systems and collaborating with peer jurisdictions and international organizations on policy development.
Canada Compared With Other Nations
According to the 2022 Crypto Adoption Index by Chainalysis, Canada ranks a modest 22nd globally in adoption. The index, released a month before the survey, reports the United States securing the 5th position. On the other hand, the United Kingdom stands at 17th place.
Nonetheless, Canada surpasses several comparable countries, including France (32), Australia (40), New Zealand (108), the Netherlands (39), and Ireland (124). However, it falls short of Germany (21).
The reasons behind Canada’s potential hesitancy in embracing crypto-assets are abundantly clear by the research conducted at Toronto Metropolitan University. The university’s researchers have uncovered that Canadians, on the whole, demonstrate notably low levels of trust in crypto-asset exchanges. The negative impact caused by incidents, such as the downfall of FTX, undoubtedly hasn’t contributed positively to the situation.
Crypto Exchanges Say Bye-Bye To the Canadian Market
Canadian regulators face the challenge of curbing scams and fraud while avoiding the deterrence of exchanges. They must implement smarter regulation rather than showing hostility towards cryptocurrencies. However, their current track record could be more encouraging.
Last month, Bybit, a Dubai-based company, announced the cessation of its operations in Canada. This decision arose due to the increased scrutiny imposed by Canadian securities administrators. As a result, the company will no longer accept new Canadian residents or nationals as customers. Similarly, traders must close their margin positions by September 30 to avoid automatic liquidation.
Again, Binance, the world’s largest cryptocurrency exchange, announced its exit from the Canadian market in May for similar reasons.
The exchange examples and the study’s results show that Canadia has some critic issues about the crypto world. We hope that necessary long-term solutions will be produced for the country in a short time.