{"id":33778,"date":"2024-07-08T10:28:10","date_gmt":"2024-07-08T10:28:10","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/liquitrade-faces-sanctions-as-canada-cracks-down-on-unregistered-crypto-exchanges\/"},"modified":"2024-07-08T10:28:10","modified_gmt":"2024-07-08T10:28:10","slug":"liquitrade-faces-sanctions-as-canada-cracks-down-on-unregistered-crypto-exchanges","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/liquitrade-faces-sanctions-as-canada-cracks-down-on-unregistered-crypto-exchanges\/","title":{"rendered":"LiquiTrade faces sanctions as Canada cracks down on unregistered crypto exchanges"},"content":{"rendered":"<p><b>(Originally posted on : CoinJournal: Latest Crypto News, Altcoin News and Cryptocurrency Comparison )<\/b><br \/>\n<\/p>\n<div>\n<div class=\"post-article-image  -mt-24  mb-8  lg:-mt-32  rounded  overflow-hidden\">\n<picture><source srcset=\"https:\/\/coinjournal.net\/wp-content\/uploads\/imagecache\/2024\/07\/LiquiTrade-faces-sanctions-as-Canada-cracks-down-on-unregistered-crypto-exchanges-smartcrop-750x375.webp\" type=\"image\/webp\" media=\"(min-width: 750px)\"\/><source srcset=\"https:\/\/coinjournal.net\/wp-content\/uploads\/imagecache\/2024\/07\/LiquiTrade-faces-sanctions-as-Canada-cracks-down-on-unregistered-crypto-exchanges-smartcrop-363x181.webp\" type=\"image\/webp\"\/><source srcset=\"https:\/\/coinjournal.net\/wp-content\/uploads\/imagecache\/2024\/07\/LiquiTrade-faces-sanctions-as-Canada-cracks-down-on-unregistered-crypto-exchanges-smartcrop-750x375.jpg\" type=\"image\/jpeg\" media=\"(min-width: 750px)\"\/><source srcset=\"https:\/\/coinjournal.net\/wp-content\/uploads\/imagecache\/2024\/07\/LiquiTrade-faces-sanctions-as-Canada-cracks-down-on-unregistered-crypto-exchanges-smartcrop-363x181.jpg\" type=\"image\/jpeg\"\/>\n<\/picture>                    <\/div>\n<ul>\n<li>LiquiTrade faces sanctions for illegal operations under Canada\u2019s Securities Act.<\/li>\n<li>BCSC found LiquiTrade enabled unregistered trading of crypto derivatives.<\/li>\n<li>Four exchanges have been banned amid the heightened Canada\u2019s crackdown.<\/li>\n<\/ul>\n<p>LiquiTrade, operator of the Latoken crypto exchange, faces impending sanctions for violating the Canada\u2019s Securities Act.<\/p>\n<p>The British Columbia Securities Commission (BCSC) has <a href=\"https:\/\/www.bcsc.bc.ca\/-\/media\/PWS\/New-Resources\/Decision-and-Orders\/Decisions\/2024\/2024-BCSECCOM-292.pdf?dt=20240703185322\">found<\/a> LiquiTrade guilty of operating an illegal exchange, highlighting ongoing efforts to enforce compliance within the burgeoning digital asset sector.<\/p>\n<h2>LiquiTrade not registered in Canada despite having a 1.5M users<\/h2>\n<p>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\u2019s Securities Act.<\/p>\n<p>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.<\/p>\n<p>The investigation revealed that LiquiTrade operated as an unauthorized exchange in British Columbia, where no recognized exchange or clearing agency operated under its name.<\/p>\n<p>This finding underscores the commission\u2019s commitment to maintaining regulatory oversight and protecting investors from potential risks associated with unregistered trading platforms.<\/p>\n<h2>Four crypto exchanges already banned in Canada<\/h2>\n<p>Canada\u2019s regulatory approach towards cryptocurrencies has been increasingly stringent, with four crypto exchanges already banned, including Catalyx, <a href=\"https:\/\/coinjournal.net\/exchanges\/kucoin\/\">KuCoin<\/a>, <a href=\"https:\/\/coinjournal.net\/exchanges\/poloniex\/\">Poloniex<\/a>, and xt.com.<\/p>\n<p>Meanwhile, fifteen licensed trading platforms, such as Bitbuy, <a href=\"https:\/\/coinjournal.net\/exchanges\/coinbase\/\">Coinbase<\/a>, and Fidelity, are authorized to operate within the region, complying with stringent regulatory requirements.<\/p>\n<p>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.<\/p>\n<p>LiquiTrade\u2019s enforcement action serves as a stark reminder of the consequences for non-compliance with securities laws.<\/p>\n<div class=\"post-meta\">\n<hr class=\"mb-6\"\/>\n<h6 class=\"text-3xl  mb-4  text-green-300\">Share this article<\/h6>\n<hr class=\"mb-6\"\/>\n<h6 class=\"text-3xl  mb-4  text-green-300\">Categories<\/h6>\n<hr class=\"mb-6\"\/>\n<h6 class=\"text-3xl  mb-4  text-green-300\">Tags<\/h6>\n<\/p><\/div>\n<\/p><\/div>\n<p><a href=\"https:\/\/coinjournal.net\/news\/liquitrade-faces-sanctions-as-canada-cracks-down-on-unregistered-crypto-exchanges\/\">Source link <\/a><br \/>\n<br \/><\/p>\n","protected":false},"excerpt":{"rendered":"<p>(Originally posted on : CoinJournal: Latest Crypto News, Altcoin News and Cryptocurrency Comparison ) LiquiTrade faces sanctions for illegal operations under Canada\u2019s Securities Act. BCSC found LiquiTrade enabled unregistered trading of crypto derivatives. Four exchanges have been banned amid the heightened Canada\u2019s crackdown. LiquiTrade, operator of the Latoken crypto exchange, faces impending sanctions for violating [&hellip;]<\/p>\n","protected":false},"author":7,"featured_media":33779,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"om_disable_all_campaigns":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0},"categories":[35],"tags":[],"_links":{"self":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts\/33778"}],"collection":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/users\/7"}],"replies":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/comments?post=33778"}],"version-history":[{"count":0,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts\/33778\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/media\/33779"}],"wp:attachment":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/media?parent=33778"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/categories?post=33778"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/tags?post=33778"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}