The securities regulator in Canada’s British Columbia reported that it actually did not regulate the problem crypto exchange QuadrigaCX that is in the market spotlight owing huge sums to its clients.
According to the Reuters report, the spokesperson for the British Columbia Securities Commission (BCSC), Brian Kladko noted that QuadrigaCX headquartered in Vancouver was not subject to regulation as it did not offer trading of securities or futures.
In fact, BCSC knew about the exchange back in 2017. However, there was no need to take any measures against the platform given the available information.
In addition, the Canadian Securities Authority (CSA) commented that none of the platforms that were involved in trading crypto assets was regulated by Canadian securities entities as a separate marketplace.
The CSA representative added that the Canadian authorities on and on repeat that people should be careful about buying digital currencies on the trading platforms.
For reference, the Nova Scotia Supreme Court reportedly approved QuadrigaCX's application for protection from creditors given a 30-day period this week. The exchange representatives and Ernst & Young audit company will try to get access and restore the assets in the cold wallets (around $130 million, as EY believes). In particular, the platform's CEO died in December but only he had access to the cold wallets at which almost all funds were kept. As a result, the company became unable to refund its clients staying with locked assets. This situation provoked numerous doubts and suspicions in the market.