QuadrigaCX had no regulatory approval, says Canadian regulator
QuadrigaCX can barely breathe amid all the new allegations cropping up almost every day. According to a Reuters report, the controversial exchange has had no regulatory approval from Canadian securities watchdog for functioning as a crypto exchange. QuadrigaCX is within the jurisdiction of the British Colombia Securities Commission [BCSC].
“As such, BCSC does not regulate it,” said spokesman Brian Kladko, according to the report. The report cited that the BCSC was aware of the existence of the company but had no clue about its operations as an exchange.
The Canadian Securities Administrators [CSA], the watchdog of provincial security regulators, said that there were no cryptocurrency trading firms that have been regulated as a trading platform by security regulators.
QuadrigaCX, the Canadian crypto exchange, fell into a quagmire after the death of its CEO Gerald Cotten which left $215 million user funds trapped in his laptop. Cotten’s wife Jennifer Robertson confessed that she did not know the password or the recovery key to unlock the laptop. The firm declared that they couldn’t access the funds because they were kept in cold storage on Cotten’s laptop to which he had the sole access.
The crypto community, in general, is treating Cotten’s death with skepticism. Some say that he faked his death to obtain client money. However, according to a death certificate published by the Government of Rajasthan’s Directorate of Economics and Statistics, Cotten passed away in Jaipur, India, on December 9.
Faking death certificates can be easy especially in a country like India. There are numerous instances were Indian citizens were caught faking death certificates to get money and land. All they need to have is some money to charm the government employees who issue the death certificate. According to a Times of India report, lawyers around the Bandra court area, Mumbai, are experts in making fake death certificates in return for money.
QuadrigaCX is knee deep in criticisms from its clients and creditors. The exchange has been granted creditor protection for 30 days. The company was asked in a hearing held on February 5 to settle the debts of its clients within 5 days.
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