Canadian Regulator Issues Warning to Unregistered Bitcoin Mining Platforms

u.today 2020-11-23 11:40
Reading time: ~2 m

The Financial and Consumer Affairs Authority (FCAA), a financial regulator that operates in the Canadian province of Saskatchewan, has issued a warning about two dubious Bitcoin mining entities.  

Metrocrypto and Sunlightcrypto encourage Canadians to passively invest in cryptocurrencies without registering with the FCAA.  

The two companies have practically the identical-looking websites. Metrocrypto offers three investment packages (“Basic,” “Classic,” and “Silver”) while Sunlightcrypto also adds the “Gold” and “Diamond” offers. The latter will set you back $20,000 with a guaranteed 30 percent percent weekly payout.

This is, of course, a major red flag. Any site that advertise guaranteed returns is almost certain to be a fraud, according to the FCAA:

“A guarantee of high investment returns with little or no risk is a key indicator of a fraudulent investment. It’s important for investors to practice due diligence.  You should always check to see if the person or company offering the investment is registered.”     

Both platforms claim to be registered in over 127 counties, which is a big fat lie. Without having practically zero social media presence, they claim to have over 41,540 active users.   

On top of that, their websites feature fake testimonials from satisfied customers, a typical trick used by cryptocurrency high-yield investment scams in the likes of Bitcoin Revolution and its countless clones.

The FCAA claims that companies have to obtain approval from the regular before offering securities or derivatives in Saskatchewan. 

It also cautions investors against putting their money into unregistered cryptocurrency entities.      

Back in 2014, Dominion, another Bitcoin mining company, was slapped with a cease-trade order by the FCAA.