LiquiTrade faces sanctions as Canada cracks down on unregistered crypto exchanges

• LiquiTrade faces sanctions for unlawful operations below Canada’s Securities Act.
• BCSC discovered LiquiTrade enabled unregistered buying and selling of crypto derivatives.
• 4 exchanges have been banned amid the heightened Canada’s crackdown.

LiquiTrade, operator of the Latoken crypto trade, faces impending sanctions for violating the Canada’s Securities Act.

The British Columbia Securities Fee (BCSC) has discovered LiquiTrade responsible of working an unlawful trade, highlighting ongoing efforts to implement compliance inside the burgeoning digital asset sector.

LiquiTrade not registered in Canada regardless of having a 1.5M customers

LiquiTrade got here below scrutiny after processing an estimated $300 million in day by day transactions for its 1.5 million consumer base, regardless of by no means registering below Canada’s Securities Act.

The BCSC panel decided that LiquiTrade facilitated buying and selling of contractual rights associated to crypto belongings, that are labeled as derivatives investments below Canadian legislation. This classification mandates registration with the BCSC earlier than partaking in such actions, a requirement LiquiTrade failed to satisfy.

The investigation revealed that LiquiTrade operated as an unauthorized trade in British Columbia, the place no acknowledged trade or clearing company operated below its identify.

This discovering underscores the fee’s dedication to sustaining regulatory oversight and defending traders from potential dangers related to unregistered buying and selling platforms.

4 crypto exchanges already banned in Canada

Canada’s regulatory strategy in the direction of cryptocurrencies has been more and more stringent, with 4 crypto exchanges already banned, together with Catalyx, KuCoin, Poloniex, and xt.com.

In the meantime, fifteen licensed buying and selling platforms, resembling Bitbuy, Coinbase, and Constancy, are approved to function inside the area, complying with stringent regulatory necessities.

The upcoming sanctions in opposition to LiquiTrade, set to be finalized by August 14, 2024, might vary from financial penalties to an entire ban on its companies.

LiquiTrade’s enforcement motion serves as a stark reminder of the implications for non-compliance with securities legal guidelines.