Nova Scotia Securities Commission Warns Against ATB Crypto

The Nova Scotia Securities Commission has issued a warning against ATB Crypto for engaging in the business of trading in securities or derivatives in Nova Scotia without authorization.

As detailed by the regulator, ATB Crypto claims to be an online trading platform connecting investors to contracts for difference trading in stocks, commodities, indices, foreign exchange, and cryptocurrencies. It claims to be based offshore in the Marshall Islands.

However, at least one Nova Scotia investor has lost funds after he opened a trading account with ATB Crypto. This investor believed he was investing in cryptoassets. Although his account showed substantial returns, withdrawal requests were ignored or met with undisclosed requirements to send additional funds to ATB Crypto to cover tax consequences.

"This is the fourth alert of this nature issued by the Commission in the last eight weeks. Always take time to verify registration and conduct research on the entities and people you invest with. Becoming an informed investor is your best protection from irreversible financial loss,"said Stephanie Atkinson, Director of Enforcement for the commission.

The commission urges Nova Scotians to exercise extreme caution when dealing with entities that are not registered in Nova Scotia. It is illegal to solicit investments in Nova Scotia without registering with the commission and complying with Nova Scotia securities laws, unless an exemption applies.

Major regulators are actively fighting against cryptocurrency scams. This week, the Investment Industry Regulatory Organization of Canada (IIROC) has issued a warning against the website EliteSFX.co​m. As detailed in the official announcement, Elitesfx (www.elitesfx.com) is luring investors with promises of quick profits in cryptocurrency trading.