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Ontario Securities Commission Warns Investors Against Five Digital Currency Firms

crypto mining

In a recent statement, the Ontario Securities Commission (OSC) warned investors against several digital currency firms. These firms include BTCReal, BitSerial, Hypercube Ventures LP, CabinCoin OÜ, and BaapPay Inc.

The digital currency industry is still a new and largely disruptive addition to the financial world. In the past, U.S. regulators took action against platforms like Bitconnect and DavorCoin. Now, the OSC is similarly warning investors against projects that operate outside of its regulatory practices.

Ontario Securities Commission warns against firms targeting Ontario investors

According to the OSC press release, the firms mentioned are involved in “schemes” that target Ontario investors and encourage them to trade or invest cryptocurrencies. Many of these sites have their own digital token available for purchase, and the OSC stated that several are not registered for sale in the state.

With this investor alert, the OSC is by no means taking a stance against the entire digital currency industry. Instead, the regulatory board is saying that these specific firms are not registered in the province to solicit investments or provide advice on trading securities.

The first of its examples is BTCReal, one of the five firms that the OSC is warning investors about. According to the OSC, BTCReal manages, where it claims to provide full investment services for digital currency investments.

“Investors should consider the risks associated with investing in cryptocurrencies, and be aware that the marketing of high returns is often an indication of investment fraud,” said the OSC, in the investor alert.

The OSC is advising anyone who has dealt with the businesses mentioned to contact the OSC Inquiries and Contact Centre at 1-877-785-1555 or

Creating innovative digital currency regulation

The digital currency landscape has many honest actors and innovators looking to change and grow entire industries. However, distinguishing between honest operators and fraudulent projects can be tricky, especially without clear guidelines available for businesses.

Recently, the OSC said it will champion investor protection in the 2018-2019 fiscal year. In order to protect investors and alleviate responsibility for businesses, the commission vowed to make digital currency regulation a “key focus.”

Overall, these initiatives and investor alerts fall under the larger umbrella of the OSC’s mandate. According to the commission, its mandate is designed to protect investors from unfair, improper, and fraudulent practices.


Image credit: Pixabay


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