- LiquiTrade faces sanctions for illegal operations under Canada’s Securities Act.
- BCSC found LiquiTrade enabled unregistered trading of crypto derivatives.
- Four exchanges have been banned amid the heightened Canada’s crackdown.
LiquiTrade, operator of the Latoken crypto exchange, faces impending sanctions for violating the Canada’s Securities Act.
The British Columbia Securities Commission (BCSC) has found LiquiTrade guilty of operating an illegal exchange, highlighting ongoing efforts to enforce compliance within the burgeoning digital asset sector.
LiquiTrade not registered in Canada despite having a 1.5M users
LiquiTrade came under scrutiny after processing an estimated $300 million in daily transactions for its 1.5 million user base, despite never registering under Canada’s Securities Act.
The BCSC panel determined that LiquiTrade facilitated trading of contractual rights related to crypto assets, which are classified as derivatives investments under Canadian law. This classification mandates registration with the BCSC before engaging in such activities, a requirement LiquiTrade failed to meet.
The investigation revealed that LiquiTrade operated as an unauthorized exchange in British Columbia, where no recognized exchange or clearing agency operated under its name.
This finding underscores the commission’s commitment to maintaining regulatory oversight and protecting investors from potential risks associated with unregistered trading platforms.
Four crypto exchanges already banned in Canada
Canada’s regulatory approach towards cryptocurrencies has been increasingly stringent, with four crypto exchanges already banned, including Catalyx, KuCoin, Poloniex, and xt.com.
Meanwhile, fifteen licensed trading platforms, such as Bitbuy, Coinbase, and Fidelity, are authorized to operate within the region, complying with stringent regulatory requirements.
The upcoming sanctions against LiquiTrade, set to be finalized by August 14, 2024, could range from monetary penalties to a complete ban on its services.
LiquiTrade’s enforcement action serves as a stark reminder of the consequences for non-compliance with securities laws.
Credit: Source link
