LiquiTrade Found Guilty of Illegally Operating Exchange in Canada

cryptonews.com:

LiquiTrade, the operator of the Latoken crypto exchange, has been found guilty of illegally operating an exchange in Canada by a panel established by the British Columbia Securities Commission (BCSC).

The accusations against LiquiTrade initially surfaced in November 2022 when it was alleged that the company had violated Canada’s Securities Act by facilitating daily transactions worth $300 million for its 1.5 million user base.

After nearly two years of investigation, the BCSC panel reached a verdict, stating that LiquiTrade had indeed violated Canadian securities legislation.

The panel claimed that LiquiTrade had never been registered under the Act and that there was no recognized exchange or clearing agency in British Columbia operated by LiquiTrade or under the name LATOKEN.

The panel further revealed that LiquiTrade allowed users to trade contractual rights of underlying crypto assets, which were considered derivatives investments.

Consequently, LiquiTrade was required to be registered under the Securities Act before legally facilitating contract trading in Canada, specifically in British Columbia.

The BCSC panel also found that LiquiTrade was operating as an unauthorized exchange, a clear violation of the Act.

The #British Columbia Securities Commission (#BCSC) has found #LiquiTrade guilty of operating an illegal #crypto exchange in #Canada without proper registration.

This violation of the Securities Act could result in sanctions ranging from fines to a ban on services.

The final… pic.twitter.com/2oxvF0RWbd

— TOBTC (@_TOBTC) July 8, 2024

In Canada, several crypto exchanges have faced regulatory scrutiny, with LiquiTrade joining the list of banned platforms that includes Catalyx, KuCoin, Poloniex, and xt.com exchange.

However