British Columbia’s securities regulator has warned investors about cryptocurrency investment schemes that claim to be backed by mineral deposits, raising concerns over the actual value of the underlying assets.

In a statement released on 2 November, the British Columbia Securities Commission (BCSC) flagged the growing promotion of digital tokens that supposedly represent ownership interests in minerals at specific projects within the province.

“The digital tokens are securities purporting to allow investors to buy, hold, and transfer interests in the minerals at a particular site through blockchain-based technology,” the Commission said.

However, the regulator warned that some issuers of these tokens have no…