In a rather coincidental turn of events, the Canadian Autorité des Marchés Financiers (AMF) has said that crypto mining contracts could be deemed as securities. While it hasn’t passed a judgment yet on whether crypto mining contracts will be labeled as such, there is a good chance that in the coming months we will see this label applied to them. The AMF made the surprise announcement after a group of investors sought action against Technologies Crypto Inc, who took more than $300,000 in crypto mining contracts and then refused to contact investors.
Get in Touch with the AMF
In an official statement, the AMF urged anyone who has invested into or bought mining contracts from Technologies Crypto Inc to reach out and get in touch. The AMF is still conducting its investigation and is appealing for all investors caught up in the case to come forward so that they can receive their lost funds.
The statement reads,
The authority is currently investigating this matter. It, therefore, urges anyone who has invested money with the correspondents to contact David Fortin-Dominguez and Samory Proulx-Oloko, to contact Ms. Hélène Guilbault at 1 877 525-0337, extension 2427, no later than February 28, 2019.
Cloud Mining on the Rise Again
It’s been a torrid year or so for crypto miners, and none more so than cloud miners. Many have been forced to shut down after sustaining heavy losses during the crypto winter, but a few are starting to open again. As more cloud mining firms start to emerge from the frost of a harsh crypto winter, more crypto mining contracts will begin floating around the web.
Crypto mining contracts allow cloud mining farms to set up shop and begin operating without wasting resources. Consumers buy mining contracts and mining farms turn on equipment to provide the correlating amount of hash rate. Any block rewards received by the cloud mining firm are then split between the farm and the owner of the contract. However, not all cloud mining firms are completely legitimate and some have been accused of never owning any hash power to begin with. It appears as if Technologies Crypto Inc could be headed down the same path.
Cease and Desist Orders for Cloud Mining Firms
South of the border in Texas, one crypto mining firm has felt the full weight of local regulators. AWS Mining PTY Ltd has been hit with a cease and desist order after it was caught operating in the state. Currently, it’s not legal to sell crypto mining contracts in the state, meaning AWS Mining was treading on very shaky grounds. However, for a cloud mining project that very much feels like a scam, it’s all part of the hype. It most likely knew that it’s illegal to offer the products in Texas and did so anyway for some free PR.
This case could cement the foundations for new legislation to come into place. If Technologies Crypto Inc does turn out to be a scam, the AMF is likely to label crypto mining contracts as securities. This would be great for the cloud mining industry, as investors would be afforded great protection from scams and it would help separate the fake from the legitimate.