How Celsius Network works is still a mystery to the AMF

While the Caisse de depot et Placement du Québec (CDPQ) continues to defend its investment of “$150 to $300 million” in Celsius Network, the Autorité des Marchés Financiers (AMF) continues its reviews and is still trying to verify the activities of these to understand company.

The CEO of the AMF, Louis Morisset, pointed out to Québec Solidaire member Ruba Ghazal yesterday at the Public Finance Committee that his organization is still working with the Securities and Exchange Commission (SEC) in the United States to regulate Celsius to clear up.

In October, CDPQ closed a $400 million funding round with growth equity firm WestCap for the “global cryptocurrency interest and lending platform.” Then, in the following weeks, thanks to new investors, the loot rose to $750 million.

arrest in Israel

In the fall, the AMF said it was already keeping an eye on Celsius. In November, the Israeli police arrested the Chief Financial Officer.

After more than six months of verification, the Quebec Financial Markets Regulator is still unable to confirm whether Celsius operates or has clients in the province. It is also too early to establish guidelines to monitor this emerging industry.

First understand what they are doing

“We still need to first understand what they are doing. […] What they are currently doing may not comply with applicable regulations. They issue real estate securities, they distribute securities,” said the CEO when asked about his squad’s investigations.

For his part, while some ambiguity remains, Finance Minister Eric Girard said he had no intention of interfering in the management of the Caisse’s portfolio. “That’s not my role,” he said.

On Wednesday, the president of the Woolen Socks of Quebec, Charles Émond, had to once again defend his organization’s investments in Celsius at the microphone of Paul Arcand at 98.5.

“This is not a cryptocurrency investment. […] We have invested in a business model that is blockchain,” he said. Celsius is a billion-dollar global leader,” he added.

Mashinsky appears with small investors who claim to have become rich thanks to Celsius.

Photo from Celsius Twitter account

Mashinsky appears with small investors who claim to have become rich thanks to Celsius.


During the investigation of budget funds, the AMF was also asked about cryptocurrencies, an industry that is gaining popularity and attracting many young investors looking to make a quick buck.

While urging caution, AMF’s management acknowledges that these new financial products may be an “asset of the future.” Because of this, management is currently working with other Canadian organizations to regulate more stable cryptos like Bitcoin.

“In our view, the phenomenon will not go away unless a technological catastrophe or other major problem crystallizes in the coming weeks or months,” Mr Morisset noted.

The AMF also plans to soon publish on its website the identities of the six cryptocurrency platforms that have agreed to show their credentials.

“Currently there are only six platforms registered in Canada. Approximately fifty other platforms have applied to register,” concluded Mr Morisset.

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