ChainCatcher news: According to Bitcoin.com, the British Columbia Securities Commission (BCSC) of Canada recently announced that Liquitrade Ltd. operated Latoken without registration and was actually operating an illegal exchange in the province.

The BCSC said a panel investigating the operator found that users of the crypto-asset trading platform “did not actually buy or sell assets” but rather traded contractual rights to those assets, which allowed them to claim future withdrawals of those assets. The panel determined that those rights were derivatives whose value was derived from the underlying crypto assets.

The BCSC statement added: “The panel found that Liquitrade facilitated trading in a number of ways, including by creating a derivatives trading market and promoting derivatives traded on Latoken, despite not being registered under the Securities Act. The panel also found that LiquiTrade operated as an exchange. However, it was not authorized by the BCSC, which is required by the Act.”