Financial market regulators around the world regularly warn consumers of the risks associated with virtual currencies or cryptocurrencies, such as Bitcoin. The Autorité des Marchés Financiers has already informed investors that cryptocurrency transactions can make it easier for fraudsters to attract investors. Cryptocurrency or virtual currency is similar to money but is not legal tender. In Canada, the only legal currency is the Canadian dollar, although transactions can sometimes be settled in another currency, such as US dollars, following an agreement between the two parties. Bitcoin is the most widely used and well-known cryptocurrency. It is a decentralized payment system. The Authority emphasizes that transactions involving a cryptocurrency are not covered by the Financial Services Compensation Fund or the Deposit Insurance Fund. Therefore, you should exercise caution when carrying out cryptocurrency transactions, as you could incur losses.
If you think you are the target of fraud or have already sent money, don’t be embarrassed, you are not alone. If you want to report fraud or need more information, contact the Canadian Anti-Fraud Center toll-free at 1-888-495-8501.