The regulator began gaining the information about these trading platforms after accepting complaints about them. The Ontario Securities Commission (OSC) issued an Investor Alert on Friday, cautioning the public of 5 firms that "appear to be involved in schemes that target Ontario investors and encourage them to trade or invest in cryptocurrencies".
Btcreal, Bitserial, Hypercube Ventures LP, Cabincoin OÜ, and Baappay Inc. are not registered in Ontario to solicit investments or provide advice on investing in, buying or selling securities.
The Ontario Securities Commission,
The OSC published last month an Investor Alert on Bitconnect, Bitconnect Coin and the BCC Exchange. “Bitconnect, the BCC Exchange and representatives of Bitconnect are not registered in Ontario to solicit investments or provide advice on investing in, buying or selling securities,” the regulator declared.The first mentioned company is Btcreal which “claims to provide full investment services for cryptocurrency-related investments and forex,” promising investors “high returns in short periods of time,” the OSC reported. The next one is Bitserial which “encourages investors to participate in a lending program where they can exchange bitcoin, litecoin, or ethereum for BTE Tokens that are ‘lent out’ for high returns,” the Commission added.
The third company, according to the comission, is Hypercube Ventures LP which processes multiple websites to encourage investors to buy “emission pools” in order to generate “VNN cryptocurrency”. The fourth is Cabincoin OÜ which "is currently advertising an unregistered token sale for Cabincoin Tokens". The last on the list is Baappay Inc. that “is a multi-layered platform that integrates both fiat and cryptocurrency payment services for merchants, that will confirm and guarantee all payments in seconds,” its website declares.
The Commission has got the information about these crypto trading platforms last month after it received a number of complaints about them, claiming that to date no platform has been estimated by the OSC as an exchange or exempted from recognition. Any platform suggesting 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 source added.