Home Breadcrumb caret Industry News Breadcrumb caret Industry BCSC issues warning about crypto apps So-called “smart wallet” trading apps claim to generate returns of up to 20% By James Langton | October 2, 2019 | Last updated on October 2, 2019 1 min read © erhui1979 / iStockphoto Regulators are sounding the alarm about an emerging new threat to investors — apps that promise easy money from automated crypto asset trading. The British Columbia Securities Commission (BCSC) issued an alert on Wednesday about so-called “smart wallet” apps that purport to generate returns through automated high-frequency trading of crypto assets. The BCSC said that one of these apps claims investors will generate returns of between 6% and 20% per month through its automated trading, while another says users can expect a monthly payoff of 6% to 15%. Additionally, investors are promised bonuses for recruiting new users to the apps. “These apps’ claims of big payouts from some kind of automated crypto-asset trading appear too good to be true,” Doug Muir, director of enforcement at the BCSC, said in a statement. “The apps also resemble a pyramid scheme, in which investors are promised earnings if they get others to join in,” he said. “Big promises and pyramid-like payouts are both classic warning signs of risky investments. We urge everyone to approach these apps with extreme caution,” he added. A couple of these apps have connections to Canada, the BCSC reported, noting that one of them is connected to a company in B.C., while another is being promoted in online forums by a Canadian resident. The BCSC noted that Canadian securities regulators recommend that investors remain cautious about trading in crypto-assets generally, as there aren’t any crypto-asset trading platforms that are registered as an exchange, a marketplace or a dealer in Canada. James Langton James is a senior reporter for Advisor.ca and its sister publication, Investment Executive. He has been reporting on regulation, securities law, industry news and more since 1994. Save Stroke 1 Print Group 8 Share LI logo