The Ontario Securities Commission (OSC) has just made a warning against BitConnect.
BitConnect manages the websites bitconnect.co and bitconnectcoin.co, where it claims to operate an online exchange platform known as the BCC Exchange. These sites offer multiple investment opportunities that include “mining”, “trading” and “staking” BitConnect Coin, which is also known as BCC Coin. BitConnect also claims to have raised money through an Initial Coin Offering.
BitConnect, the BCC Exchange and representatives of BitConnect are not registered in Ontario to solicit investments or provide advice on investing in, buying or selling securities.
Other regulators have recently issued warnings about and taken action against BitConnect. The Texas State Securities Board issued an emergency cease and desist order on January 4, 2018 against BitConnect. The New Brunswick Financial and Consumer Services Commission also published an investment alert in January about BitConnect.
Investors should consider the risks associated with investing in cryptocurrencies. Information on common signs of investment fraud, helpful material on cryptocurrency basics, and more on Ontarians and cryptocurrencies can be found on the OSC’s website.
The mandate of the OSC is to provide protection to investors from unfair, improper or fraudulent practices, to foster fair and efficient capital markets and confidence in the capital markets, and to contribute to the stability of the financial system and the reduction of systemic risk.