The Nova Scotia Securities Commission warns Nova Scotians who want to invest in cryptocurrencies about claims made by CoinRise, a crypto-trading platform.
In a press release on Tuesday, the commission said that www.coinrise.ca is not registered “to engage in securities or derivatives trading in Nova Scotia.”
It is illegal to apply for investment in the province without first registering with the Commission.
CoinRise claims on its website to be Canada’s fastest growing crypto trading platform and says it offers asset management and investment banking services.
The Commission said at least one person from Nova Scotia has invested in CoinRise. It said the investor’s account on the platform showed profitable gains on their main investment, but when the investor tried to withdraw their funds, they were only able to withdraw a small amount. Subsequent withdrawal requests were ignored.
In December, Saskatchewan’s consumer authority issued a warning about CoinRise, which at the time claimed to be based in Regina.
After this warning was issued, CoinRise changed its location on its website from Regina to Founders Square at 1701 Hollis St. in Halifax. Founders Square does not list CoinRise as a tenant on its website.
No one from CoinRise initially responded to CBC’s emails and live chat request for comment Tuesday.
Two of the email addresses returned and could not be delivered. The telephone number of CoinRise spokesman Don Lehman, who had a Kitchener, Ont., Area code, was interrupted.
“The Internet can be a dangerous place to trade investments, but it can also be a valuable tool for avoiding financial losses. A simple online search can reveal warnings and warnings, complaints, reviews and other useful information to help investors make informed investment decisions. . ” said Stephanie Atkinson, director of enforcement for the Nova Scotia Securities Commission, in the press release.
Nova Scotians can search for a person or company registration on the Nova Scotia Securities Commission website.