Consumers urged to take certain steps before investing via person or firm soliciting them
The Autorité des marchés financiers (AMF) and the Financial Services Regulatory Authority of Ontario (FSRA) have cautioned the public against the representations of Cryptlogger PLC, an investment and crypto-asset management company, and of Ellite Cryptominer, a crypto currency exchange.
In a news release, the AMF warned Quebec consumers against Cryptlogger PLC, which while not registered with the AMF has falsely claimed to be AMF-regulated. More generally, the AMF is urging the public to be careful when considering investing with companies that solicit via online channels, given that there are limited remedies against such companies and their executives when they operate outside the country as they often do.
Specifically, the AMF recommends that Quebec consumers go through certain steps prior to investing through a person or firm soliciting them:
- Check the register of firms and individuals authorized to practise or contact the AMF Information Centre to know whether the firm or individual has been duly registered with the AMF
- Once registration has been confirmed, call the firm or individual via the phone number provided in the Register to confirm that the solicitation is coming from that particular firm or individual
- If the firm or individual has not been registered, report the situation right away to an agent at the AMF Information Centre
- Refrain from giving personal information or any payment before taking the previous steps
In another news release, FSRA encouraged consumers to be cautious if Ellite Cryptominer, which operates via https://www.ellitecryptominer.com, or someone claiming to represent the company, reaches out to them.
The Financial Services Commission of Ontario (FSCO), which the FSRA replaced in June 2019, never licensed Ellite Cryptominer to conduct securities business in Ontario, despite the company’s use of an FSCO logo and despite its claims to be licensed by FSCO and by the Registrar of Companies for England and the U.K., said the news release.
The FSRA does not license persons or businesses to conduct securities business, including crypto currency exchanges offering trading in securities. It is the Ontario Securities Commission that has primary responsibility over securities regulation in the province, while the Financial Conduct Authority regulates crypto currency exchange in the U.K.
