Canada`s Regulators will Look into QuandrigaCX scandal
As you may have heard, the cryptocurrency exchange Quadriga CX lost $190 million in cryptocurrency. Reuters reported on February 8 on what Canada`s biggest securities regulator stated. They have reportedly said that they will be looking into Quadriga CX due to growing concerns that the regulatory gap might leave investors in the platform unprotected. “Given the potential harm to Ontario investors, we are looking into this matter and have already been in contact with the monitor.”, said the Ontario Securities Commission in a statement that was quoted by Reuters. Nevertheless, there was no official confirmation whether this was an investigation. The situation with the Qudriga CX situation reminds us that there is a regulatory vacuum for the cryptocurrency industry in Canada as in many places around the world. This is making the authorities question whether there would be anyone held accountable if the investors suffer from any potential losses. The regulators will review the issue and check whether there are any laws broken. “For example, should (Quadriga) have been registered as an exchange and were any securities laws breached with respect to the trading of the coins on the exchange?” It is the case that about C$180 million ($135.7 million) in cryptocurrency have been frozen in the accounts of Quadriga users. The founder Gerald Gotten was the only person who had the password, but he, unfortunately, died suddenly. The regulators consider bringing an enforcement action against the company or its officers and directors. It remains to be seen how the issue would be solved and whether this would impact the way such problems are solved in the future. Read the full article