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 made investors aware that cryptocurrency transactions can make it easier for fraudsters to attract investors. Cryptocurrency or virtual currency is similar to money but has no legal tender. In Canada, the only lawful currency is the Canadian dollar, although transactions may sometimes be settled in another currency, for example, in US dollars, as a result of an agreement between the two parties. Bitcoin is the most widespread and well-known cryptocurrency. It is a decentralized payment system. The AMF stresses that transactions involving cryptocurrency are not covered by the Financial Services Compensation Fund or the Deposit Insurance Fund. Therefore, you should exercise caution when performing cryptocurrency transactions as you may experience losses.
If you think you are a fraud target or have already sent money, do not be embarrassed, you are not alone. If you would like to report a fraud or need more information, contact the Canadian Anti-Fraud Center, toll-free, at 1-888-495-8501.