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


Synthetic assets are financial instruments that mimic the price movements of other assets, without requiring the ownership or delivery of the underlying assets. For example, a synthetic cryptocurrency is a contract that tracks the price of a real cryptocurrency, such as Bitcoin or Ethereum, but does not involve the actual exchange of coins. Synthetic assets can offer some advantages, such as lower costs, higher liquidity, and more flexibility. However, they also come with higher risks, such as leverage, counterparty risk, and regulatory uncertainty.

Regulation and Compliance:

One of the main challenges of trading synthetic assets is finding a reliable and trustworthy platform that complies with the relevant laws and regulations. In Canada, any platform that offers trading services for securities or derivatives must be registered with the provincial securities regulators, such as the ASC. This ensures that the platform meets certain standards of conduct, disclosure, and investor protection. However, some platforms operate without registration or authorization, and may engage in illegal or fraudulent activities, such as misrepresenting their products, manipulating prices, or stealing customer funds.

Customer Support:

One of the signs of a scam brokerage is the lack of customer support or communication. A legitimate platform should provide clear and transparent information about its products, fees, risks, and policies. It should also have a responsive and helpful customer service team that can address any issues or complaints that may arise. However, a scam brokerage may avoid or ignore customer inquiries or requests, especially when it comes to withdrawals or refunds. It may also use aggressive or deceptive marketing tactics to lure customers into depositing more money or signing up for more services.

Customer Reviews:

Another way to assess the credibility of a platform is to check its customer reviews and feedback. A reputable platform should have positive and consistent reviews from satisfied customers who can attest to its performance and reliability. It should also have a good reputation among industry experts and peers who can vouch for its quality and legitimacy. However, a scam brokerage may have negative or inconsistent reviews from unhappy customers who have experienced problems or losses with the platform. It may also have fake or paid reviews that are designed to create a false impression of popularity or success.

Measures to Avoid Scam Brokerages:

To avoid falling victim to scam brokerages, investors should do their due diligence before choosing a platform to trade synthetic assets. Some of the measures they can take are:

– Verify the registration status of the platform with the provincial securities regulators or use the Canadian Securities Administrators (CSA) National Registration Search tool.

– Research the background and reputation of the platform by checking its website, social media accounts, customer reviews, and industry ratings.

– Read and understand the terms and conditions of the platform, including its products, fees, risks, and policies.

– Test the platform’s functionality and customer service by using a demo account or a small amount of money.

– Monitor the platform’s performance and activity by checking its price movements, order execution, withdrawals, and statements.

– Report any suspicious or fraudulent activities to the provincial securities regulators or the CSA.


Synthetic assets are an emerging and innovative form of trading that can offer some benefits to investors who are looking for more diversity and flexibility. However, they also pose significant risks and challenges that require careful consideration and caution. Investors should be aware of the ASC warning about, as it is an unregistered and potentially fraudulent platform that offers trading services for synthetic assets. Investors should also follow the measures outlined above to avoid scam brokerages and protect their interests.

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