A newly released Crypto Asset Survey done by Ipsos for the Ontario Securities Commission (OSC) finds Canadian investors are more informed about the cryptocurrency trade, but some are still in the dark about what crypto actually is.
The third wave of the study polled Canadians with investments in late 2025 and early 2026 following identical surveys in 2022 and 2023.
It found 25 per cent of respondents hold crypto compared with only ten per cent in 2023.
Yet, only 59 per cent knew what a crypto asset is - up slightly from 54 per cent in 2023.
Even more concerning, only half of crypto buyers verified whether their trading platform was registered with provincial securities regulators - up from 38 per cent.
The study concludes working knowledge about crypto remains limited with, “persistent misunderstanding of their regulation, insurance and transaction capabilities.”
More crypto investors seeking professional advice
The survey found 34 per cent of respondents consulted friends, family or colleagues before purchasing crypto. 46 per cent got their information from social media and only 19 per cent turned to the financial press.
One silver lining found 39 per cent go through qualified advisors, doubling from 19 per cent in 2023.
That could help explain why 22 per cent purchased crypto to diversify their investment portfolios compared with 18 per cent in 2022. The portion of respondents who said they bought crypto for purely speculative reasons remained steady at 22 per cent.
Crypto fraudsters gaining ground
A whopping one-third of those surveyed say they regretted purchasing crypto, which suggests they wound up losing money.
It might also suggest they are part of the growing number of people caught in crypto-related scams.
According to the Canadian Anti-Fraud Centre, Canadians overall lost $224 million in crypto fraud in 2024 compared with only $19 million two years before.
As the popularity of digital currencies increases, an anti-regulatory political movement in Washington, DC is tipping the scale in the fraudster’s favour. Even the U.S. president - a proven fraudster - is currently hocking crypto.
The cryptocurrency market is global with scant regulatory oversight in some corners of the world, and that makes everybody - everywhere - potential victims.
4 Ways to spot crypto scams
1. Hot tips:
Exclusive investment offers are just one of the red flag warnings from the Canadian Securities Administrators (CSA) in it’s ongoing effort to crack down on investment fraud.
The umbrella group that represents Canada’s securities regulators cautions investors to be wary of investment pitches promoted as just-for-you, and an exclusive group of special (wealthy) insiders.
It says fraudsters posing as investment advisors tend to play on human vulnerabilities such as the fear of missing out (FOMO). They could even drop a few names of familiar investors you might recognize.
In some cases, they could refer to the tip as “insider” information from someone with access to exclusive information about the company that issued the stock. Even if it’s true, it is illegal to knowingly trade on inside information.
2. Offers of unrealistic returns:
If it seems too good to be true, it probably is. All investments have some level of risk. As a general rule; the higher the potential return, the higher the risk.
Real investment advisors are prohibited from describing a return as “guaranteed” unless it actually is (such as a guaranteed investment certificate or GIC).
3. High-pressure tactics:
Scammers of every stripe will employ tactics to pressure their victims into making a quick decision before they have time to realize they are being scammed.
Even if you push back, they will often pressure you to invest a little at first and come back later looking for a larger amount. Once they get their hook in you, they won’t give up.
4. Off the radar investments:
Any individual who encourages you to subvert the government or avoid financial institutions is most likely trying to keep their illegal activities from being tracked, according to the CSA.
Without the proper documents and statements, fraudsters can easily slip off into the night with your money. Legitimate investments also require a prospectus; a formal document that explains the details of an investment and the risks involved.
The CSA cautions Canadian investors to be wary of firms or individuals from outside the country. Brokerage firms need to register with provincial and territorial securities regulators as dealers or advisors to open trading accounts or recommend investments.
Precautions before you invest
If you are approached by someone pitching a crypto investment by phone, text, email, social media, or even in person, the CSA suggests ensuring they and their firm are registered using the online National Registration Search (NRS) on the CSA website.
If you suspect it’s a scam, report it to your provincial or territorial regulator immediately.
