Canadian Regulator Warns Against Investing In Crypto Firm Bitcoin Bank

News, Regulation | March 6, 2018 By:

The Financial and Consumer Services Commission (FCNB) of the Canadian province of New Brunswick has cautioned the public against investing in a foreign cryptocurrency bank operating illegally in the province.

In a March 5 statement, the commission warned residents about Bitcoin-bank.io, a website for a company claiming to be a “cryptobank,” offering payment card solutions, wallet services, and an opportunity to invest in its BTCB coin initial coin offering (ICO). Bitcoin Bank claims to have developed a software to make trading in cryptocurrency highly profitable.

The commission said Bitcoin Bank is not registered to trade in, or advise on, securities or derivatives in New Brunswick and is, therefore, operating illegally.

The regulator began investigating the company after being alerted to the fact that Bitcoin Bank was advertising investment opportunities on a Canadian online classified site. The investigation revealed that Bitcoin Bank’s advertised street-listed address in California is fake and many of the photographs accompanying team profiles on the website had been taken from other sites with fake names attached. They also found that content had been copied from other websites.

The regulator advised would-be investors to do their homework before investing into anything. “Becoming an informed investor is the best way to protect your money,” the FCSC said. “Informed investors don’t leave it to chance. They understand the risks and costs involved with each of their investments.”

The warning came after the British Columbia Securities Commission (BCSC) added Bitcoin Bank to the BCSC’s Investor Caution List.