The BCSC found LiquiTrade guilty of operating an illegal exchange. This could result in sanctions ranging from a fine to a ban.
A panel established by the British Columbia Securities Commission has found LiquiTrade guilty of operating an illegal exchange in Canada.
LiquiTrade’s Latoken crypto exchange was first accused of violating Canada’s Securities Act in November 2022 when it processed $300 million in daily transactions for its 1.5 million user base.
Nearly two years after the investigation, a BCSC panel ruled that LiquiTrade violated Canadian securities legislation: “LiquiTrade has never been registered in any capacity under the Act and there is no recognized exchange or clearing agency in British Columbia operated by LiquiTrade or using the name LATOKEN.”
As a result, LiquiTrade had to be registered under the Securities Act in order to legally facilitate contract trading in Canada, specifically in British Columbia.
As of March 2024, Canada has banned four crypto exchanges, including Catalyx, KuCoin, Poloniex and the xt.com exchange. On the other hand, 15 crypto trading platforms, including Bitbuy, Coinbase and Fidelity, are authorized to operate in the region.
