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Regulator Rules Cryptocurrency Mining Contracts Can be Securities

Avatar Rick D. 7 months ago

The financial markets authority of Quebec (AMF) is requesting that investors in a cryptocurrency mining company contact them. The announcement comes after Technologies Crypto Inc. was issued with a series of freezing orders in connection with existing securities regulations earlier this month.

Technologies Crypto Inc. reportedly took over $300,000 from investors that were under the impression that the funds would be used for mining. Many have been left out of pocket.

AMF: Cryptocurrency Mining Contracts Can Fall Under Securities Regulation

According to a press release issued by the AMF and reported by Finance Feeds, those investors who had put money into a Quebec-based cryptocurrency mining firm are being urged to contact local financial regulators. Many of those investing into Technologies Crypto Inc. have been unable to reclaim their investment from the company.

The AMF post requests that anyone who was involved in any capacity with the cryptocurrency mining firm or its two principals, David Fortin-Dominguez and Samory Proulx-Oloko, to contact Ms. Hélène Guilbault by the end of February. They can do so at telephone number 1-877-525-0337.

The regulator requested that the Financial Markets Administrative Tribunal (TMF) issue a series of freezing orders against the aforementioned company and individuals earlier this month. The order stated that Technologies Crypto Inc. was acting in violation of existing securities laws.

Trading under the name “Make It Mine”, Technologies Crypto Inc. is thought to have taken $300,000 from investors. These backers believed that the money would be used for crypto mining. Whilst some were able to reclaim funds, others were left at a loss and attempts to contact the firm have been unsuccessful for many.

The freezing orders issued thus far state that those mentioned above are prohibited from taking money from their bank accounts, getting rid of any cryptocurrency mining equipment, and partaking in any activities relating to the trade of securities.

Jean-François Fortin of the AMF stated the following of the regulators’ ruling:

“With this decision, the TMF ruled for the first time that an investment offer related to cryptocurrency mining may constitute an investment contract, ie a security whose public offering is regulated… We therefore invite investors who have done business with the respondents to contact the Authority promptly so that we can assist them.”

Quebec’s regulators have a history of policing crypto firms violating securities legislation.

Not the First Time the TMF Steps in to Protect Cryptocurrency Investors

The TMF has been active in the policing of cryptocurrency firms before. Perhaps its most high-profiles case is that against PlexCoin. Last year, the regulator renewed its injunction orders against all companies and individuals connected with the high-profile scam. Additionally, the TMF ordered the shutting down of websites owned by the company, as well as its Facebook pages.

 

Related Reading: Crypto Assets Won’t Be Classified As Securities With Proposed U.S. Bill

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