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British Columbia’s securities regulator has joined its Ontario counterpart in issuing a warning about investing in cryptocurrencies amid worries the lightly regulated market is ripe for possible financial scams.

The British Columbia Securities Commission says it has noticed an increase in the number of cryptocurrency offerings involving an initial coin or token offering, in which companies try to raise capital by issuing newly invented coins or tokens.

It says B.C. residents should exercise extreme caution when deciding whether or not to invest in an ICO or ITO as some companies follow through on their business plan or idea and other do not.

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It adds that coins or tokens issued for speculative trading in the secondary market are an inherently risky for investors and urges people who have received unsolicited offers to participate in an ICO or ITO to contact the BCSC.

Ontario securities regulators, as well as the Bank of Canada, have also warned Canadians about the risks of investing it the fledgling market.

The Ontario Securities Commission said last month that it is gathering information on several cryptocurrency trading platforms after it received a number of complaints.

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