BCSC Exposes LiquiTrade for Operating Unregistered Crypto Trading

As a seasoned crypto investor with years of experience under my belt, I can’t help but feel a mix of disappointment and caution upon hearing the news about LiquiTrade Ltd. and their unregistered crypto trading platform, LATOKEN. The British Columbia Securities Commission (BCSC) exposing this Cayman Islands-based company for operating without proper registration in British Columbia since 2020 is a stark reminder of the importance of due diligence and regulatory compliance in our industry.

The British Columbia Securities Commission (BCSC) has revealed that LiquiTrade Ltd., a company based in the Cayman Islands, is running an unregistered cryptocurrency trading platform named LATOKEN within the borders of British Columbia.

Based on a recent report from the British Columbia Securities Commission (BCSC), it has come to light that LiquiTrade has been enabling the exchange of significant cryptocurrencies, including Bitcoin and Ethereum, without proper registration under the Securities Act in British Columbia since 2020.

BCSC’s investigations uncovered that LiquiTrade represented LATOKEN as a regulated exchange and one of the top-40 most trustworthy platforms in advertisements. However, these assertions were determined to be false based on BCSC’s findings during their investigation.

An intricate examination revealed that LATOKEN boasted approximately 1.5 million active traders and recorded around $300 million in transactions daily. Nevertheless, they were yet to secure the required authorizations to lawfully function in British Columbia.

As a financial analyst examining the BCSC investigation’s findings, I uncovered intriguing distinctions in the case of LATOKEN. Instead of users engaging in direct cryptocurrency trading, they were essentially dealing with rights to assets.

As a crypto investor, I’ve come across some troubling news regarding LiquiTrade. In 2022, German financial regulators inspected their operations and found them to be unauthorized to provide financial services in Germany. Consequently, the British Columbia Securities Commission (BCSC) is still considering the appropriate penalties for LiquiTrade. These penalties could potentially include substantial fines and a ban on their operations. It’s essential for investors like myself to stay informed about such developments and exercise caution when dealing with unauthorized entities.

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2024-07-05 02:28