Canadian Securities Watchdog Says it Does Not Regulate Crypto Exchange QuadrigaCX
- he troubled exchange remained unregulated, even though the BCSC was aware of it since 2017.
- 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.
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.
- During an interview with FT, CEO Brian Armstrong said that before the lawsuit a SEC staff member had said that all crypto except BTC was security, and should be delisted.
- When asked how he came to that conclusion, the SEC staff member reportedly said “we’re not going to explain it to you, you need to delist every asset other that Bitcoin”.
Coinbase CEO Brian Armstrong appears on stage at the 2014 TechCrunch Disrupt Europe/London, at The Old Billingsgate on October 21, 2014 in London, England. Anthony Harvey/Getty Images for TechCrunch
- Bybit is the latest exchange following Binance and OKX to announce its departure from the Canadian market due to “recent regulatory development”.
- Canadian nationals will no longer be able to open new accounts starting Wednesday, while existing users have until 30 September to withdraw their assets from the platform.
- Being more prone to taking risks and investing money in new technologies, millennials definitely have a big impact on the global economy.
- With most of the current workforce consisting of millennials, this generation has become the deciding factor behind the success and failure of many industries.