The British Columbia Securities Commission (BCSC) reportedly has not regulated QuadriagaCX, the cryptocurrency exchange which owes its customers millions of dollars, Reuters reported on Feb. 7.
The troubled exchange remained unregulated, even though the BCSC was aware of it since 2017, as there was no indication of traded securities or derivatives, or that they even operated as an exchange. BCSC spokesman Brian Kladko further added “As such, BCSC does not regulate it,”
According to Reuters the Canadian Securities Administrators (CSA), an umbrella organization for the country’s provincial securities regulators, said no platform trading crypto assets had “been regulated as a marketplace by Canadian securities regulators.”
It is believed that around $190 million in both fiat and cryptocurrencies remain inaccessible by the exchange since its CEO and founder, Gerald Cotten, died in December. Cotten was the one responsible for the keys to the cold wallets where QuadrigaCX kept the majority of its assets.
Reportedly QuadrigaCX has filed for creditor protection in the Nova Scotia Supreme Court in order to find a way to refund its users. This Tuesday Justice Michael Wood granted QuadrigaCX 30-day stay of proceedings in an attempt to stop any lawsuits from happening, while the company is seeking resolution for its customers.