BCSC Warning Against Cryptocurrency Company
The BCSC, along with the 13 financial regulators within the provinces of Canada, have included Eyeline Trading, a firm that helps make the crypto trading process easier, onto the continuously growing list of investment caution.
It seems Eyeline Trading has caught the attention of the BCSC when the firm sought an individual residing in the province of BC and proceeded by opening an account in said individuals name without any approval. The BCSC urges investors to be wary of this company and to proceed with caution when dealing with them.
The company in question, whose operations online are through eyelinetrading.io, provides users with various crypto-related services, such as mining, trading, wallet, exchange, and also managing funds solutions. There is no available confirmation on the website about any license under any jurisdiction, which is quite worrying for investors.
The BCSC explained the risks when it comes to trading in cryptos some activities within the crypto trading market are indeed properly regulated; however, they comprise just a portion of the entire market and the largest portion goes to those trading illegally through platforms that are completely unregulated.
Crackdown Taking Shape
Due to the more stringent inspections of ICOs by regulators in Canada, a lot of startups decided to completely relocate to countries that offer a more welcoming atmosphere for cryptos i.e. Gibraltar, Eastern Europe, and also Malta.
A lot of entrepreneurs have converged to Zug, an upscale Swiss municipality, which was a host to most of the biggest ICOs in the previous year and helped raise capital that has exceeded $700 million.
The crackdown has seen about forty security regulators in the United States and Canada issue an array of warnings to increase awareness about the issue and advise users to be cautious when they choose to invest in digital currencies. Furthermore, a total of about seventy inquiries, as well as 35 action requirements related to ICOs, have been produced over the last 3 months.
NASAA has created several initiatives to reach as many individuals as possible and serve as a warning to investors about the many risks correlated with the use of cryptos and ICOs.
NASAA also put together a sort of task force just this year to start certain investigations for crypto-related investment solutions and ICOs. Such investigations led to action taken against 100s of ICOs.
The task force also discovered more than 30,000 cryptocurrency-related names for domain registrations, most of which appeared either last year or this year.