Are you using a registered crypto asset trading platform?

Submitted by nsscadmin on Wed, 04/06/2022 - 09:00

Did you know that that crypto asset trading platforms (CTPs) must be registered with securities regulators to legally offer crypto asset trading services to investors in Nova Scotia?

Investors may see advertisements for many different CTPS online, in print, on TV, even on the ice and boards of professional hockey arenas. However, just because a CTP is advertising to investors in Canada does not mean they can legally do business here. Investors should always check to see if a CTP is registered before investing to ensure the CTP has received exemptive relief to offer crypto asset trading to investors in Nova Scotia.

To make it easier for Nova Scotia investors to determine if a CTP is registered, the Commission has added a new page to its website. This page lists all CTPs registered in Nova Scotia and provides links to their exemptive relief documents which outlines their terms and conditions. This page will be continually update as more CTPs become registered.

Trading through unregistered CTPs can be dangerous and extremely risky for investors. The Commission has issued several investor alerts recently for CTPs that have stolen money from investors who were investing in crypto assets.

All investor alerts issued by the Commission can be found on our Investor Alert database. The Commission recommends investors stay away from any CTP and any other individual or company found in the Investor Alert database.

Failure to file annual financial statements.
Failure to file interim financial statements.
Failure to file an annual or interim management’s discussion and analysis (MD&A) or an annual or interim management report of fund performance (MRFP).
Failure to file an Annual Information Form (AIF).
Failure to file a certification of annual or interim filings required by Multilateral Instrument 52-109 Certification of Disclosure in Issuers’ Annual and Interim Filings (MI 52-109).
Failure to file required proxy materials or a required information circular.
Failure to file an issuer profile supplement on the System for Electronic Disclosure by Insiders (SEDI).
Failure to file a material change report.
Failure to provide a written update after filing a confidential report of a material change.
Failure to file a business acquisition report.
Failure to file annual oil and gas disclosure prescribed by National Instrument 51-101 Standards of Disclosure of Oil and Gas Activities (NI 51-101) or technical reports for a mineral project required under NI 43-101 Standards of Disclosure for Mineral Projects (NI 43-101).
Failure to file a mandatory news release.
Failure to file corporate governance disclosure as required by national Instrument 58-101 Disclosure of Corporate Governance Practices (NI 58-101).
Failure to file audit committee disclosure as required by Multilateral Instrument 52-110 Audit Committees (MI 52-110) or BC Instrument 52-509 Audit Committees.
Failure to include disclosure in an issuer’s MD&A relating to disclosure controls and procedures and their direct effectiveness that is referred to in a certificate filed under MI 52-109.
Financial statements of the reporting issuer, or the auditors’ report accompanying the financial statements, do not comply with the requirements of NI 51-102 Continuous Disclosure Obligations (NI 51-102), National Instrument 81-106 Investment Fund Continuous Disclosure (NI 81-106) or National Instrument 52-107 Acceptable Accounting Principles, Auditing Standards and Reporting Currency (NI 52-107).
The reporting issuer has acknowledged that its financial statements, or the auditors’ report accompanying the financial statements, may no longer be relied upon.
The reporting issuer’s AIF, MD&A, MRFP, information circular, or business acquisition reports do not contain information for each of the content items required by NI 51-102 or NI 81-106.
The reporting issuer’s technical disclosure or other reports do not comply with the disclosure requirements of NI 43-101 or 51-101.
Failure to pay a fee required by the Act or the regulations.
Failure to comply with any other requirement related to continuous disclosure.