Necosmart wishes to provide clarity to our customers, partners, and the public regarding our inclusion on the Nova Scotia Securities Commission's Investor Caution List.
Our attention was recently drawn to the fact that Necosmart appears on the NSSC's caution list. We understand that such listings can create the impression that a company is unsafe, unregistered, or operating a fraudulent service. This has understandably raised questions among some customers.
To be clear, our business is not a trading platform, investment scheme, or investment service. We do not solicit or manage client funds, and we do not offer securities, derivatives, or investment products. Necosmart operates solely as a federally registered Money Services Business (MSB) under FINTRAC's oversight, engaging only in the direct purchase and sell of digital assets on peer-to-peer (P2P) platforms. We do not offer margin, futures, staking, leveraged trading, or tokenized securities.
Over the past several months, we have been in active communication with the NSSC to resolve the matter. We have provided detailed responses explaining our operating model, our compliance structure, and why our activities do not fall under securities legislation.
The core of the Commission's concern appears to be their interpretation that a part of our business may involve "securities" or activities that require provincial registration. We respectfully disagree with this assessment for the following reasons:
Our model aligns with federal MSB rules, not provincial securities law.
We have formally requested that the Commission reconsider and remove Necosmart from the caution list. While the NSSC has chosen to maintain their position, they have confirmed that:
Despite this, we recognize that being on such a list can negatively affect public perception. This is why we are sharing this update publicly—to ensure full transparency and to reassure our customers and partners.
Necosmart remains fully committed to:
We will continue working with the NSSC to provide clarity and address their concerns, and we remain confident in the legality and integrity of our business model.
If you have any questions regarding this statement, our compliance practices, or our regulatory status, please contact our Compliance Office at [email protected].