A provincial regulator in Canada has issued a warning against a digital currency exchange that claims to be the fastest growing in the country. The Nova Scotia Securities Commission said CoinRise isn’t registered to serve Nova Scotians and has been denying some users access to their funds.
In its press release, the regulator warned the public that “CoinRise, operating online at www.coinrise.ca, is not registered to engage in the business of trading in securities or derivatives in Nova Scotia.”
CoinRise has allegedly claimed to be Canada’s fastest-rising digital currency trading platform, according to the watchdog. Aside from digital currencies, it offers wealth management and investment banking services. In a December 9, 2021 press release, the exchange stated to have been in operation for 15 years in the financial sphere. It also revealed to be engaging in private equity and venture capital services.
The Commission reported that at least one resident of Nova Scotia has invested with CoinRise.
“While this investor’s account showed substantial gains on the principal investment, the investor was able to withdraw only a minimal amount of the reported returns and further withdrawal requests were ignored,” the watchdog said.
While registering with CoinRise, the investor also reportedly surrendered his personal information, including his credit card, passport, and driving license. This puts him at risk of identity theft and financial loss.
This isn’t the first time CoinRise has been called out for providing financial services without being registered. On December 22, 2021, the Financial and Consumer Affairs Authority in the southern province of Saskatchewan warned investors against the platform.
As the Nova Scotia regulator said, at the time, CoinRise claimed to be based in Regina. However, immediately the Saskatchewan watchdog called it out, it altered its location to Halifax in Nova Scotia.
Canadian regulators are known for cracking down on digital currency exchanges, including Poloniex, KuCoin, and ByBit. The latest to face their wrath is Binance which the Ontario Securities Commission booted out.
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