Canadian Watchdog Says It Doesn't Regulate QuadrigaCX Exchange

British Columbia's securities watchdog has said that it has no remit to regulate troubled crypto exchange QuadrigaCX.

AccessTimeIconFeb 8, 2019 at 12:00 p.m. UTC
Updated Sep 13, 2021 at 8:52 a.m. UTC

The securities watchdog in the Canadian province of British Columbia has said that it has no remit to regulate troubled crypto exchange QuadrigaCX, which owes customers millions of dollars said to be frozen on an encrypted laptop.

According to Reuters, the British Columbia Securities Commission (BCSC) spokesman Brian Kladko said Thursday that, as Vancouver, B.C.-based QuadrigaCX was not trading in securities or derivatives, the exchange does not come under its purview.

The Canadian Securities Administrators (CSA) also told Reuters: “No crypto-asset trading platform had been regulated as a marketplace by Canadian securities regulators.” The CSA is a collective forum comprising the regional securities regulators of Canada.

Possibly as much as $190 million in both cryptocurrency and fiat owned by QuadrigaCX users have been unreachable since the firm's founder and CEO, Gerald Cotten, died in December, leaving no a way for staff to access the computer apparently storing its funds.

Cotten’s death has been at the center of concerns and theories about the state of the exchange and the sequence of events leading up to the current situation.

The exchange has since sought creditor protection in the Nova Scotia Supreme Court as it seeks to find a way to refund users and access the locked funds. On Tuesday, a judge from the court granted the exchange its application, giving it a 30-day stay of proceedings to try and resolve the situation for users.

Vancouver image via Shutterstock 

DISCLOSURE

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.


Learn more about Consensus 2024, CoinDesk’s longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.