Some cryptocurrency trading platforms are allegedly establishing connections with fictitious regulatory or dispute groups, according to the Canadian Securities Administrators (CSA), the organization that represents all provincial and territorial authorities. These trading platforms are merely making an effort to enhance their reputation in the hopes that a gullible investor will fall for the false connotations.
Canadian Securities Administrators Have Uncovered A Scam
The following false organizations are listed by the CSA; it should be noted that the Blockchain Association is not associated with a real organization of the same name.
- FSC, the Financial Standard Commission Financial Commission of Canada/Finacom PLC Ltd.
- (U.K. and Hong Kong) Blockchain Association https://blockchainassociation.io
- European Securities and Markets Authority
- (Ireland) Crypto Conduct Authority/Crypto Frugal Ltd.
- Crypto Frugal Ltd./Crypto Conduct Authority (U.K.)
- E-markets for international regulation and brokerage
- BIC PLC Ltd., the British Investment Commission.
- Financial Market Supervisory Authority of International
- The company is known as Crypto Commission Ltd.
The Canadian Securities Administrators claim that they may have missed some such fictitious organizations. The CSA made no mention of the specific measures they are employing to combat these fictitious groups. “We are an authentic organization and aren’t happy with the description of our business,” the group’s spokeswoman told CoinDesk.
It is registered to Alexey Pavlenko, who is mentioned on the organization’s website as a board member, according to documents from Hong Kong’s corporate registration. Additionally, Pavlenko is named as a director of the company’s U.K. division. The Blockchain Association division of the Financial Commission disagreed with the CSA’s classification as well.
The Canadian Securities Administrators’ notification included information that “we do not agree with, and we believe that the government agency made a mistake,” Chief Operating Officer Nikolai Isayev wrote in an email to CoinDesk. “We have already hired Canadian legal counsel, and we are putting up a filing to the Canadian Securities Administrators to have this designation removed. This problem should be rectified shortly.
The Financial Commission’s majority of members are foreign exchange trading brokerages. YouHolder, a centralized yield platform, is the only notable blockchain business.