Canadian Authorities Conclude Liquitrade Operates Illegally as Crypto Exchange
The British Columbia Securities Commission (BCSC) has concluded its investigation into Liquitrade’s crypto asset trading platform. Determining that the company operated an illegal exchange.
According to the BCSC, Liquitrade Ltd., operating as Latoken without proper registration, facilitated trading of contractual rights instead of actual crypto assets. These rights, classified as derivatives, were based on underlying crypto assets and allowed users to request future withdrawals.
Despite being unauthorized under the Securities Act, Liquitrade promoted and facilitated derivative trading, functioning as an unlicensed exchange. The BCSC is now deliberating on potential sanctions, including fines or bans on market participation, following Liquitrade’s non-compliance during the investigation process.
Clever Robot News Desk 8th July 2024
