Ontario Securities Commission CEO Maureen Jensen took the struggles of cryptocurrency investors into account as she spoke about the common frauds prevalent in the crypto markets recently. She said that the newness of this sector is making it more vulnerable to scams.

The CEO talked about the unregulated cryptocurrency space in Canada, which is going through several issues. It does not enjoy the legitimacy of traditional financial instruments nor can users find assurance from the authorities about stringent regulatory checks.

Jensen said:

“This is the new shiny thing to invest in, and people are getting hurt. There are cryptocurrency firms that are completely legitimate that are playing by the rules and are raising capital to build blockchain environments and new systems that could potentially be the unicorns of the future.”

She added:

“But there are many, many people who are fraud artists that are coalescing around these new shiny objects, and they are trying to raise capital from individual investors, and then they abscond — they’re not ICOs, they’re out and out frauds.”

It is clear that the regulator does not see all crypto activities as illegal. However, it does recognize that the sector is rife with numerous frauds.

The Canadian Securities Administrators (CSA), which is the national body of regulators in Canada, tried to create a distinction between coins used as security and coins used as utility tokens earlier this month. The body suggested that a large number of currencies issued via ICOs can be classified as securities even if they have been touted as utility tokens.

The regulators are trying to contain this unregulated sector. The North American Securities Administrators Association (NASAA) is carrying out over 70 investigations under “Operation Crypto-Sweep.” Last month, the Securities Commission of British Columbia asked 12 offshore companies advertising ICOs in the territory to cease activities until the Securities Commission finds they are compliant with local laws.

Jensen remarked that it will never be possible to get rid of every fraud in the industry because of its continuously evolving nature. She also noted that cryptocurrencies are a global business, which makes it hard to control.

She also warned the investors, saying:

“It’s really important that people understand what they’re investing in. Please don’t put your money down unless you check out who’s behind it.”

Ontario Securities Commission CEO Warns about Frauds in Crypto Market was originally found on [blokt] - Blockchain, Bitcoin & Cryptocurrency News.

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