Nova Scotia Securities Regulator Alarms against ATB CRYPTO

On December 23, the Nova Scotia Securities Commission issued an investor alert that reminded local investors that ATB CRYPTO is not a registered company to conduct the business of securities and derivatives trading in Nova Scotia. The regulator stated that ATB Crypto claims to be an online trading Online Trading Online trading represents the trading of fiat currencies, digital currencies, commodities, stocks and indices, where traders and investors intend to make a profit, via the purchase or sale of the aforementioned products. This is done through an electronic network, made accessible by brokers in the form of an online trading platform or hub.Online trading continues to see a rapid growth year on year, due to a number of reasons. Firstly, the number of brokers offering their services, with more mone Online trading represents the trading of fiat currencies, digital currencies, commodities, stocks and indices, where traders and investors intend to make a profit, via the purchase or sale of the aforementioned products. This is done through an electronic network, made accessible by brokers in the form of an online trading platform or hub.Online trading continues to see a rapid growth year on year, due to a number of reasons. Firstly, the number of brokers offering their services, with more mone Read this Term platform that connects investors with contracts for difference (CFDs) trading in cryptocurrencies Cryptocurrencies By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw Read this Term, foreign exchange, indices, commodities, and stocks. The firm claims that its headquarter is based in the Marshall Islands.

According to the commission, at least one Nova Scotia investor has lost funds after he opened a trading account with ATB Crypto. The investor is considered to have been investing in crypto coins. Though his account showed that he gained substantial returns, his withdrawal requests were denied or met with undisclosed requirements to send additional funds to ATB Crypto to cover tax consequences. Online searches show that ATB Crypto is a scam.

Stephanie Atkinson, Director of Enforcement for the Nova Scotia Securities Commission, admitted that there has been a recent rise in scams that involve purported online trading platforms. He said: “This is the fourth alert of this nature issued by the Commission in the last eight weeks. Always take time to verify registration and conduct research on the entities and people you invest with. Becoming an informed investor is your best protection from irreversible financial loss.”

The regulator urged local residents to exercise extreme caution when dealing with companies that are not registered in Nova Scotia. The commission said that it is illegal for firms to solicit investments in Nova Scotia without registering with the regulator and comply with securities laws of the province, unless an exemption applies. The agency further advised residents to see if a person or entity is registered by checking the Canadian Securities Administrators’ National register. The agency also encouraged residents to contact their local securities regulator to report investment scams or when they suspect suspicious behaviors for anyone providing investment opportunities.

How Can Investors Protect Themselves?

Cryptocurrency has captured the world's attention this year, and scammers have also taken notice. With the increase in the popularity of crypto assets and blockchain technology, an influx of unprecedented scams has been on the rise. The high-tech nature of cryptocurrency is attracting sophisticated scammers capable of executing schemes and hacks. The recent “Squid Game” scam shows how developers disappeared with more than $3 million and drained the liquidity pool for the exchange after the new SQUID cryptocurrency token skyrocketed in value to a price of $2,861 before plummeting to $0. Crypto investors are opening themselves to such kinds of new and evolving risks of scams and fraud. Investors should therefore be cautious and be able to read red flags of frauds and scams, such as guaranteed high investment returns, unlicensed/unregistered sellers, skyrocketing account values, sounds to be good to be true, and fake testimonials.