BCSC alleges crypto trading platform is violating Securities Act

VANCOUVER, BC, Nov. 16, 2022 /CNW/ - The B.C. Securities Commission (BCSC) alleges that the operator of a crypto asset trading platform is facilitating derivatives transactions without being registered and is operating as an exchange in B.C. without being recognized by the Commission.

Latoken, an online cryptocurrency platform operated by LiquiTrade Ltd., purportedly has more than 1.5 million registered users who trade more than 240 crypto assets and processes more than US$300 million in transactions daily. LiquiTrade is incorporated in the Cayman Islands and has operated Latoken since 2020.

Users of Latoken can deposit crypto assets or fiat currency (government-backed money, such as the Canadian dollar) into a wallet, and can use those assets to trade on the platform. LiquiTrade facilitates transactions by matching orders from users who are buying or selling crypto or fiat assets, and charges fees for trades and withdrawals.

The interests in crypto assets traded on the platform are derivatives, and does not restrict B.C. residents from accessing or trading on its platform. 

LiquiTrade markets Latoken as a regulated exchange and conducts business as an exchange in B.C., but LiquiTrade has never been registered under the Securities Act and Latoken has never been recognized by the Commission.

This enforcement action is part of the Canadian Securities Administrators (CSA)'s ongoing, coordinated effort to ensure that crypto asset trading platforms comply with securities legislation in Canada. Regardless of the location of their operations, platforms that facilitate the buying and selling of crypto assets by Canadian investors must comply with applicable requirements under Canadian securities legislation.

Crypto asset trading platforms that have been registered with or have obtained exemptive relief from CSA members are listed on the CSA's website.

The BCSC's allegations have not been proven. The Commission requires the parties involved to appear at the BCSC's offices on January 10, 2023 if they wish to be heard before a hearing is scheduled. 

About the B.C. Securities Commission (www.bcsc.bc.ca)

The B.C. Securities Commission is the independent provincial government agency responsible for regulating capital markets in British Columbia through the administration of the Securities Act. Our mission is to protect and promote the public interest by fostering:

• A securities market that is fair and warrants public confidence
• A dynamic and competitive securities industry that provides investment opportunities and access to capital

Learn how to protect yourself and become a more informed investor at www.investright.org

SOURCE British Columbia Securities Commission

Media Contact: Andrea Ross, 604-899-6976; Public inquiries: 604-899-6854 or 1-800-373-6393 (toll free), [email protected]