BCSC Advises Caution in Investing with Cryp Trade

The British Columbia Securities Commission has issued an official public warning, urging BC residents to be wary of engaging with Cryp Trade.

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The Canadian regulator specified that it had found that Cryp Trade has been placing advertisements that are targeting BC residents.

Moreover, the public address notes that due to the nature of Cryptocurrencies Cryptocurrencies By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw Read this Term, they could be classified as securities under BC legislation. In such a circumstance, it would require proper registration and licensing in order to legally offer trading or advise on the relatively infant financial product.

As it stands, Cryp Trade is not registered or authorized to “trade in, or advise on, securities or Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term contracts in BC.” Consequently, the BCSC is urging that residents of BC adhere to cautionary behavior with regard to engaging in any activity with Cryp Trade, or any other unregistered company or entity.

Allegations of unlawfully offering financial products without proper licensing is not a new issue for Cryp Trade. In September of last year, the Italian regulator, Commissione Nazionale per la Societa e la Borsa (CONSOB), suspended the operations of Cryp Trade, for exactly that reason.

During the CONSOB investigation, it was also discovered that Cryp Trade had been offering, through various channels, participation in an investment portfolio that guaranteed a monthly ROI ranging from 17.7% to 29.7%. Furthermore, the company failed to respond to requests for additional information, issued by CONSOB on two separate occasions.

The BCSC continues to monitor and assess unlawful and unauthorized activity in the financial sector, issuing public warnings with respect to companies that are offering financial services without authorization.

The Canadian regulator has maintained a stringent stance to unauthorized financial firms and unlicensed entities. The scope of their jurisdiction includes the binary options industry as well, which has been the recipient of global regulators’ scrutiny in recent years.