DD Support Board and Research Team

[1manband]

Canadian securities regulators released their own warning about cryptocurrency stocks last Thursday. But this one was directed more to the companies than the general public. Of course, the last 2 companies suspended by the SEC were both Canadian, but didn't trade in their home market - always a massive red flag.

https://www.bcsc.bc.ca/Securities_Law/Policies/Policy4/PDF/46-307__CSA_Staff_Notice___August_24__2017/

"Many of these cryptocurrency offerings involve sales of securities. Securities laws in Canada will apply if the person or company selling the securities is conducting business from within Canada or if there are Canadian investors.

We note that these products may also be derivatives and subject to the derivatives laws adopted by the Canadian securities regulatory authorities, including trade reporting rules."

"A cryptocurrency exchange that offers cryptocurrencies that are securities must determine whether it is a marketplace. Marketplaces are required to comply with the rules governing exchanges or alternative trading systems. If an exchange is doing business in a jurisdiction of Canada, it must apply to that jurisdiction’s securities regulatory authority for recognition or an exemption from recognition. To date, no cryptocurrency exchange has been recognized in any jurisdiction of Canada or exempted from recognition.

Allowing coins/tokens that are securities issued as part of an ICO/ITO to trade on these cryptocurrency exchanges may also place the business issuing the coins/tokens offside securities laws. For example, the resale of coins/tokens that are securities will be subject to restrictions on secondary trading"