From the Regulators

The new virtual currency is scheduled to start on Aug. 7 even though the Financial Markets Administrative Tribunal issued orders against firms selling it

By James Langton |

The Autorité des marchés financiers (AMF) is warning investors against participating in the launch of PlexCoin, a new virtual currency.

On July 20, the Financial Markets Administrative Tribunal (FMAT) issued various orders against PlexCoin, as well as several other firms, PlexCorps, DL Innov inc., Gestio inc., and Dominic Lacroix, which would prohibit them from soliciting investors, the AMF says. The FMAT also ordered these to stop advertising any sort of investment and to shut down their websites.

However, the AMF says that it appears that the subjects of those orders have not complied. In addition, it notes that the sale of PlexCoin is scheduled to start on Aug. 7.

As a result, the AMF is warning investors about "the major risks that could stem from responding to this invitation to invest."

Recently, the U.S. Securities and Exchange Commission issued a report concluding that so-called initial coin offerings can be subject to securities law. And, it issued an investor bulletin warning about the added risks of participating in these sorts of offerings.