New Brunswick warns about cryptocurrency bank illegally operating in province

A collection of Bitcoin (virtual currency) tokens are displayed in this picture illustration taken December 8, 2017. REUTERS/Benoit Tessier/Illustration/File Photo

New Brunswick’s consumer services commision is issuing a warning: Don’t do business with a foreign cryptocurrency bank operating illegally in the province.

The commission says that, which styles itself as a “cyrptobank,” is not registered to trade in, or advise on, securities or derivatives in the province and is, therefore, operating illegally.

READ MORE: Is Bitcoin a bubble that’s about to burst? Economists say ‘yes,’ crypto experts say ‘no’

The Bitcoin bank offers payment card solutions, wallet services for cryptocurrency and an opportunity to invest in cryptocurrency — which it billed as extremely lucrative.

However, according to experts, the real value of Bitcoin is difficult to determine for two reasons: the currency is incredibly volatile and trading practices may manipulate behaviour in unregulated exchanges.

The commission reportedly began investigating the organization after being alerted to the fact that the cryptobank was adverting investment opportunities on a Canadian online classified site.

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According to the commission, many of the advertisements used by the company are taken from other websites with fake names attached. They also found that content had been copied from other websites.

WATCH: Bitcoin, what is it and how is it used?

Click to play video: 'Bitcoin explained by Dwayne Henne of KCCU Wealth Solutions.'
Bitcoin explained by Dwayne Henne of KCCU Wealth Solutions.

The consumer commission is asking anyone who has been approached or targeted by to contact them at 1-866-933-2222.

— With files from Jessica Vomeiro 

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