The British Columbia Securities Commission (BCSC) has found LiquiTrade guilty of operating an illegal exchange in Canada. The Latoken crypto exchange, owned by LiquiTrade, was accused of violating Canada’s Securities Act in 2022, when it processed $300 million in daily transactions for its 1.5 million users. The BCSC panel found that LiquiTrade enabled users to trade contractual rights of underlying crypto assets, which is considered a derivatives investment. As a result, LiquiTrade needed to be registered under the Securities Act to legally facilitate contract trading in Canada. Sanctions on LiquiTrade, which could include monetary penalties or a service ban, will be finalized by August 14, 2024.