Quebec regulator seeks non-compliant blockchain firm investors

Getting your Trinity Audio player ready...

The financial regulator in Quebec, Canada has called on investors in a non-compliant blockchain startup to come forward. In its statement, the regulator claimed that the firm had breached the Securities Act.

The statement by the Autorité des Marchés Financiers (AMF) stated that the Financial Markets Tribunal (TMF) had previously issued orders to the accused firm warning it against divesting itself of funds. The TMF also warned the accused firm, Laboratoire Blockchain Inc. against taking any action with its securities or any other properties it owned, including cryptos.

The TMF had also extended the injunctive orders to three other individuals connected with the startup. These are Benjamin Forte, Jonathan Forte and Nicolas Barbasch-Bouchard.

The statement made it crystal clear what it expected from the mentioned parties:

“In addition, the TMF ordered the respondents to withdraw any advertisement or other publication of the same nature, in connection with the activities of Laboratoire Blockchain Inc., Published or broadcast, directly or indirectly, by Internet or otherwise, and in particular on Facebook .”

The statement further called on investors who had staked their money on the enterprise to come forward. Through a direct phone call using a number listed on the website, they can call in with their tales. The deadline for the investors is on April 1.

Quebec has been a budding crypto destination, boosted by the province’s low energy costs. With the proliferation of crypto businesses to the province, the financial regulator has been forced to be very vigilant to protect consumers.

The province, which is the second-largest in the country, grabbed the headlines last year after it temporarily hiked the electricity prices for crypto mining firms. In its proposal, it stated that this would ensure the consistent supply of electricity in light of the growing crypto mining industry.

The hike followed over 300 applications from crypto mining firms that wanted to set up shop in the province. This would have required the Hydro-Quebec, the province’s electricity provider to increase production by 40 percent.