OSC Warns Investors of Unregistered Cryptocurrency Investment Firms
The Ontario Securities Commission is warning the public that several groups are promoting investments in cryptocurrencies without having the necessary provincial registrations.
The British Columbia Securities Commission says it has noticed an increase in the number of cryptocurrency offerings involving an initial coin or token offering, in which companies try to raise capital by issuing newly invented coins or tokens.
Any platform that offers cryptocurrencies that fit the definition of securities “must determine whether it is a marketplace. Marketplaces are required to comply with the rules governing exchanges or alternative trading systems,” the news outlet elaborated.
The provincial regulator is asking people who have had dealings with the businesses to contact the OSC at 1-877-785-1555 or firstname.lastname@example.org.
It adds that coins or tokens issued for speculative trading in the secondary market are an inherently risky for investors and urges people who have received unsolicited offers to participate in an ICO or ITO to contact the BCSC.
The Five Unregistered Firms mentioned in Friday’s warning includes Btcreal, Btcreal, Hypercube Ventures LP, Cabincoin OÜ, Baappay Inc.
The Ontario Securities Commission said last month that it is gathering information on several cryptocurrency trading platforms after it received a number of complaints.
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