CoinRise is not registered to engage in the business of trading in securities or derivatives, says Nova Scotia Securities Commission in an alert. It warned investors that CoinRise, which claims to be Canada’s fastest-growing crypto trading platform, cannot operate in the region.
The Commission said that despite an investor’s account showing a substantial gain on the principal investment, the person is only able to withdraw a minimum amount of the reported returns. The platform has ignored further withdrawal requests. The watchdog highlighted that the investor had to provide personal information, including passport, driver’s license and credit card, when opening the account. This, the Commission said makes the investor vulnerable to identity theft and financial loss.
The platform has also found itself in the red zone of the Financial and Consumer Affairs Authority of Saskatchewan (FCAA) investor alert. It has come to the fore that CoinRise has claimed to be located in Regina, Saskatchewan. After the December alert, it changed its location to Halifax.
Stephanie Atkinson, Director of Enforcement for the Commission, advised investors to take time to search the internet for the entity and its representatives. He acknowledges that the worldwide web can be a dangerous platform to look for investments. But Atkinson said it can be used as a valuable tool to avoid financial loss. He highlighted that a simple online search can reveal warnings and flags, investor reviews and complaints as well as other useful information. It can help investors stay informed and make wise decisions.
The NSSC urged the people of Nova Scotia to be careful when dealing with unregistered entities and persons. It is illegal to pursue investments in Nova Scotia without registration and compliance with the region’s rules and regulations.