Securities regulators issue warning on risks with cryptocurrency products

MONTREAL — The Canadian Securities Administrators has issued a warning about risks associated with products linked to cryptocurrencies as interest in the space continues to rise.

The umbrella organization for Canada’s provincial and territorial securities regulators singled out futures contracts in its warning, noting that while they may be traded on regulated exchanges, their high level of risk is not suitable for all investors.

The bulletin comes after both the CME Group and Cboe started allowing trading of Bitcoin futures, allowing investors to bet on what the currency might do going forward.

CSA chair Louis Morisset said in a release that the underlying value of the futures contracts is based on trading on largely unregulated markets, making them more susceptible to volatility and at risk of sudden and significant margin calls in the futures market.

The CSA says that as with every investment, an investor looking to participate in cryptocurrency futures trading should understand all of the risks involved, and that registered dealers need to perform their own due diligence before recommending any cryptocurrency-related products.

Interest in cryptocurrencies like Bitcoin has exploded this year as the price of the currency has approached US$20,000 recently after starting the year off at under US$1,000.

Just Posted

Coat, cash donations accepted on the side of the road in Red Deer

Fifth annual Coats for Kids and CACPC Charity Checkstop held Saturday afternoon on Taylor Drive

UPDATE: Red Deer RCMP locate missing 64-year-old woman

Red Deer RCMP have located a 64-year-old woman, who was reported missing,… Continue reading

Not a political question: Thunberg calls for climate action in Alberta

EDMONTON — Teen climate activist Greta Thunberg marched into the middle of… Continue reading

Alleged sex assault victim details struggles in proposed suit against Toronto school

TORONTO — A former student at an all-boys Catholic school in Toronto… Continue reading

WATCH: Red Deer Citizens on Patrol monitoring downtown with new program

Volunteers will patrol downtown Red Deer to help keep the city safe.… Continue reading

Your community calendar

Tuesday The Small Business Centre at Burman University’s School of Business invites… Continue reading

Scheer won’t say if Conservatives hired consultant to ‘destroy’ People’s party

TORONTO — With election day less than 48 hours away, Andrew Scheer… Continue reading

Man’s death in Richmond, B.C. suspicious, not random, say investigators

RICHMOND, B.C. — The discovery of a man’s body in a Richmond,… Continue reading

Quebec man found guilty of first-degree murder in slaying of ex-wife, stranger

ST-JEROME, Que. — A Quebec man was found guilty of first-degree murder… Continue reading

Mexico says Trump shows ‘solidarity’ after suspect freed

MEXICO CITY — Mexican President Andrés Manuel López Obrador said Saturday he… Continue reading

‘I am back,’ Bernie Sanders tells supporters at NYC rally

NEW YORK — Storming past questions about his health, Bernie Sanders vowed… Continue reading

Leaders pour it on with rallies, boosts for candidates as campaign reaches peak

OTTAWA — Liberal Leader Justin Trudeau has a marathon day of campaigning… Continue reading

Most Read