Are Bitcoin and other cryptocurrencies fraudulent?
Cryptocurrencies are digital currencies that are not issued or backed by a central bank or monetary authority and in many cases, have not been subject to traditional financial sector regulations. Cryptocurrencies are risky, because they are volatile, lack oversight, and are vulnerable to hacking. Some fraudsters have tried to capitalize on market interest in cryptocurrencies by creating new scams or rebranding existing scams.
There are businesses looking to raise money by issuing coins or tokens offerings known as initial coin offerings (ICOs) or initial token offerings (ITOs). ICOs and ITOs may be subject to securities regulation. Learn more about cryptocurrency offerings.
Before you consider purchasing a cryptocurrency, make sure you understand how they work and the risks involved. To learn more about cryptocurrency visit GetSmarterAboutMoney.ca or contact the OSC’s Inquiries and Contact Centre.