Canadian Regulator BCSC has added a new entity to its Investment Caution List. This time, the BCSC warns against BitcoinBank, the self-proclaimed “cryptobank”. What do we know about the firm?
5 March, AtoZForex – Canadian financial regulator British Columbia Securities Commission (BCSC) has published a warning on its official website. The regulatory body has added a new entity to its Investment Caution List. The latest company to make it to the BCSC’s warning list is the self-proclaimed “cryptobank” BitcoinBank (BTCB).
Canadian Regulator BCSC Warns Against BitcoinBank
The BCSC has mentioned that the firm is operating online via website bitcoin-bank.io. The official announcement from the BCSC reads:
“We recently became aware of BTCB and found its advertisement targeting British Columbia (BC) residents and offering BTCB Coins through an initial coin offering.
Cryptocurrencies are a subset of digital currencies. Cryptocurrencies are not fiat currencies. In certain circumstances, cryptocurrencies may be considered to be securities under the securities legislation in BC, and trading in or advising on them may require registration in BC.”
Following the acknowledgment of the fact that BitcoinBank has been targeting investors across Canada, the BCSC has decided to add the entity’s name in its Investment Caution List.
The BCSC has also noted that BitcoinBank has no valid registration to trade in, or advise on, securities or exchange contracts in BC. Therefore, the Canadian regulator has urged BC residents to exercise extreme caution when dealing with unregistered firms.
The trend of firms claiming that they are banks is becoming more popular day by day. Just like that, in January of the current year, Texas state regulators have issued a cease-and-desist order to the so-called cryptocurrency bank AriseBank. The authorities have ordered it to stop any services to the residents of the state.
In the official press release, the Texas Banking Commissioner Charles G. Cooper has stated that the business does not offer banking services. However, it has created a considerable confusion with its offerings. Arise has appeared in the public when an alleged partnership with BitShares and a launch of an ICO were exposed as a scam. The project has described itself “the first ever decentralized banking platform.”
Think we missed something? Let us know in the comments section below.