Warning Investors CatalX CTS Ltd

Regarding registration of issuance, offer or sale of securities/derivatives, and reporting requirements

Introduction:

Cryptocurrency trading is a booming market that attracts many investors looking for high returns and diversification. However, it is also a risky and complex field that requires careful research and due diligence before choosing an exchange platform. One of the factors to consider is whether the exchange is registered and regulated by the relevant authorities in your jurisdiction.

Regulation and Compliance:

In Canada, cryptocurrency exchanges that deal with securities or derivatives are subject to the securities legislation of each province or territory. This means that they have to register with the securities regulators and comply with their rules and reporting requirements. These requirements are designed to protect investors from fraud, manipulation, and unfair practices.

One of the securities regulators in Canada is the Alberta Securities Commission (ASC), which oversees the capital market in Alberta. Recently, the ASC warned about CatalX CTS Ltd., a cryptocurrency exchange that operates in Alberta and claims to be “Canada’s premier cryptocurrency exchange platform”. The ASC stated that CatalX is not registered to trade in, or advise on, securities or derivatives in Alberta and that it has not filed any reports or provided any information to the ASC.

Customer Support:

Another factor to consider when choosing a cryptocurrency exchange is the quality of its customer support. A good exchange should provide responsive, helpful, and transparent support to its users, especially when they encounter issues or have questions about their transactions. A bad exchange, on the other hand, may ignore, delay, or mislead its customers, or even block their access to their funds.

According to some online reviews, CatalX has a poor customer support service that fails to address the concerns and complaints of its users. Some users reported that they experienced delays, errors, or failures in withdrawing their funds from CatalX, and that they received no assistance or explanation from the exchange. Some users also claimed that they were charged excessive fees or hidden costs by CatalX, and that they were unable to get a refund or compensation.

Customer Reviews:

One of the ways to evaluate a cryptocurrency exchange is to read the feedback and testimonials of its existing or former customers. A good exchange should have a positive reputation and a high rating among its users, who should express their satisfaction and trust in the platform. A bad exchange, on the other hand, may have a negative reputation and a low rating among its users, who should express their dissatisfaction and frustration with the platform.

According to some online platforms that collect and aggregate customer reviews, such as Trustpilot and Scamadviser, CatalX has a very low rating and a high number of complaints from its users. Most reviews are negative and critical of CatalX’s performance, reliability, and honesty. Some users accused CatalX of being a scam or a fraud that steals money from its customers.

Measures to Avoid Scam Brokerages:

As we have seen, there are many red flags and warning signs that indicate that CatalX may not be a trustworthy or legitimate cryptocurrency exchange. Therefore, we advise investors to avoid using CatalX or any other similar platform that does not meet the minimum standards of registration, regulation, reporting, support, and reputation. Instead, we recommend investors to follow these measures to avoid scam brokerages:

– Do your own research and due diligence before choosing an exchange platform. Check its background, history, credentials, features, fees, security measures, customer reviews, and ratings.

– Verify whether the exchange is registered and regulated by the securities regulators in your jurisdiction. Contact them directly if you have any doubts or questions.

– Read and understand the terms and conditions of the exchange before opening an account or making any transactions. Be aware of any risks, limitations, obligations, or liabilities involved.

– Keep track of your transactions and balances on the exchange. Report any issues or discrepancies immediately to the exchange and the regulators.

– Be cautious of any offers or promotions that sound too good to be true. They may be traps or bait-and-switch schemes designed to lure you into depositing more money or revealing your personal information.

Conclusion:

CatalX CTS Ltd. is a cryptocurrency exchange that claims to offer the best prices, security, and customer service in the industry. However, it is not registered or regulated by the Alberta Securities Commission (ASC), which has issued a warning about its registration and reporting requirements. Moreover, it has a poor customer support service and a negative reputation among its users. Therefore, we advise investors to avoid using CatalX or any other similar platform that does not meet the minimum standards of registration, regulation, reporting, support, and reputation. Instead, we recommend investors follow these measures to avoid scam brokerages: do your own research and due diligence; verify whether the exchange is registered and regulated; read and understand the terms and conditions; keep track of your transactions and balances; and be cautious of any offers or promotions that sound too good to be true.