Canadian Regulator OSC warns against BitConnect, adding that neither BitConnect, nor BCC Exchange and its representatives are registers in Ontario. They are not legally allowed to solicit investments or provide professional advice on investing in, selling, or buying securities.
19 April, AtoZ Markets – One of the key Canadian regulators, the Ontario Securities Commission (OSC) has issued a warning, cautioning investors against dealing with BitConnect.
Canadian Regulator OSC Warns Against BitConnect
BitConnect is the entity that manages the websites bitconnect.co and bitconnectcoin.co. On these websites, the company claims to operate an online exchange platform that is entitled “BCC Exchange.” The company offers a number of investment opportunities, which include “mining”, “trading” and “staking” BitConnect Coin. The latter is also known as BCC Coin.
However, the OSC warns that neither BitConnect, nor BCC Exchange and its representatives are registers in Ontario. They are not legally allowed to solicit investments or provide professional advice on investing in, selling, or buying securities.
The OSC warns that investors should consider the risks that are related to the investment in cryptocurrencies. The regulator reminds that investors can find all the information on common signs of investment fraud, helpful material on cryptocurrency basics, and more on the OSC’s website.
Other regulators’ warnings against BitConnect
OSC is not the first regulator to ring the bell on BitConnect. Earlier this year, the US regulators have issued two cease-and-desist orders to BitConnect planned ICO. In the very beginning of January, the US regulators from the North Carolina Securities Division have issued the temporary cease-and-desist letter to BitConnect. That time, the regulator has stated that BitConnect did not undergo the necessary registration. Thus, it had no authority to deal or sell securities in the Tar Heel State.
Following two cease-and-desist letters from the US regulators, BitConnect Platform shut down at the end of January in the US. The team behind the project also blamed the “bad press” for the latest developments.
In the meantime, many industry insiders have been expressing criticism in regards to BitConnect, suspecting that the project is a Ponzi scheme.
On the 31st January, a new lawsuit has been filed against BitConnect. The lawsuit has been filed on behalf of Kentucky resident Brian Page. The document mentioned BitConnect International, BitConnect LTD, Bitconnect Trading LTD and Ryan Maasen as defendants.
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