Regulators in Saskatchewan are the latest to take action against an unregistered online forex and cryptocurrency trading platform, USI-Tech Ltd.
The Financial and Consumer Affairs Authority of Saskatchewan (FCAA) has issued a temporary cease trade order against the platform that allows users to trade bitcoin and forex.
The order, which runs until Feb. 15, may be extended as necessary, the regulator says.
Residents of Saskatchewan have been contacted by the company and have participated in conference calls in which USI-Tech solicited individuals to purchase securities or derivatives, the FCAA says. The firm is not registered in Saskatchewan, the regulator adds.
“Investors can lose a lot of money if they trade with unregistered dealers and advisors. Although forex and cryptocurrency can be legitimate products, unscrupulous individuals often use these terms to convince investors to place their money in illegal activities,” says Ed Rodonets, deputy director of enforcement, FCAA, in a statement.
Last year, several Canadian regulators issued their own warnings about the firm, and state regulators in Texas issued a cease and desist order against the firm, which claims to be based in Dubai.