23 Apr FMA – published warning related to excessively large risks associated with crypto-assets
April 23, 2021
Cryptoactive or token issues, referred to as initial corner offering (ICO), are high-risk, volatile investments that operate in an environment prone to manipulation or fraud. Ethereum is an example of a decentralized exchange blockchain where a large number of ICOs are launched; the blockchain is open to all and is not controlled for use. Instructions on how to create, make tokens available for trading is accessible on the web.
FMA and cyber-surveillance team are making efforts to detect fraudulent projects, due to use of social networks that allow private exchanges it is often impossible.
Individuals and companies that raise capital through crypto actives are required to comply with securities or derivatives regulations, otherwise face prosecution and sanctions.
FMA has requested that first-time users of crypto actives or tokens be aware of their legal obligations and ensure compliance with existing regulations. Companies and individuals operating platforms for trading crypto actives that are securities or derivatives, or contractual rights are subject to securities or derivatives regulations.
For more information, visit www.lautorite.qc.ca.