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British Columbia warns investors about cryptos

Chris Hamblin, Editor, London, 21 May 2018

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The British Columbia Securities Commission in Vancouver is warning investors about an increase in the number of cryptocurrency offerings involving initial coin or token offerings.

Companies may use cryptocurrency offerings to raise capital or to advance a project or a business, by issuing newly invented coins or tokens through an ICO or ITO. In many cases, these coins and tokens are securities. If they are securities, the regulator asserts that the company that is conducting the ICO or ITO and its owners and employees must comply with that law.

The regulator is urging investors to treat cryptocurrency offerings with extreme caution, noting that some companies stick to their business plans and ideas but others do not. Some companies issue coins or tokens solely for speculative trading in the secondary market, which is an inherently risky activity for investors. Anyone who has received an unsolicited offer to participate in an ICO or ITO ought to contact the BCSC on 001-604-899-6854 or 001-800-373-6393.

The British Columbia Securities Commission is the quango that regulates capital markets in British Columbia in accordance with the Securities Act.

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