The Nova Scotia Securities Commission published an investor alert for CoinRise, a cryptocurrency exchange, yesterday. According to the authority, CoinRise (coinrise.ca) is not registered with the commission or any relevant authority. Moreover, the company cannot engage in the business of trading in securities or derivatives in the region.
The commission noted that at least one individual has invested funds with CoinRise. The company, which claims to be one of the fastest-growing crypto trading platforms in Canada, processed only a minimal amount of the investor’s reported returns. CoinRise ignored the additional withdrawal requests.
CoinRise claims to be located in Halifax, Nova Scotia. Moreover, the crypto trading platform has been flagged by the Financial and Consumer Affairs Authority of Saskatchewan (FCAA). CoinRise asked investors to provide personal information during the account opening process, including their driver’s license, passport and credit card details.
“In addition to verifying registration, always take the time to search the internet for the entity and its representatives,” says Stephanie Atkinson, the Director of Enforcement for the Commission. “The internet can be a dangerous place to shop for investments but can also be a valuable tool for avoiding financial loss. A simple online search can reveal alerts and warnings, complaints, reviews and other useful information to help investors make informed investment decisions.”
Investor Protection
Cryptocurrency scams have surged across Canada in the last few years. To protect investors against rising fraudulent activities, the commission urged investors to conduct due diligence before making an investment decision.
“The Commission urges Nova Scotians to exercise extreme caution when dealing with unregistered entities and individuals. It is illegal to solicit investments in Nova Scotia without registration and compliance with Nova Scotia securities laws unless an exemption applies. To see if a person or company is registered, you can check the Canadian Securities Administrators’ National Registration Database,” the commission added.
