latest news

For the latest iComply & Global Digital Finance news.

BCSC Targets Yet Another Cryptocurrency Exchange

May 28, 2020 | Compliance Updates, iComply Insights

British Columbia Securities Commission adds Cryptec.io to the provincial Investment Caution List

What Happened?

May 27, 2020: Cryptec, a cryptocurrency trading platform incorporated in the Commonwealth of Dominica, has been providing services to residents in the province of British Columbia, without being registered with the local securities regulator​.

According to the BCSC, Cryptec may be considered an exchange under section 25 of the Securities Act, RSBC 1996, c. 418 (the Act), and has not registered as a dealer under section 34 of the Act. Cryptec’s activities are regulated by Canadian legislation, the company has subsequently been added to the IOSCO warnings list.

Source: https://www.bcsc.bc.ca/Enforcement/Investment_Caution_List/Cryptec/

Who Is Impacted?

Online financial services providers that have yet to obtain proper licensing, as well as entities engaged in a business relationship with Cryptec.

Why This Matters?

Due to its failure to comply with British Columbia securities regulations, Cryptec is now listed on international regulatory watch lists such as IOSCO and faces increased scrutiny in the months and years ahead.

This precedent provides clear guidance on when regulators determine a financial platform is required to be registered in their jurisdiction–as soon as you serve your first user, whether or not you have a physical operation in the region. Ignoring this can lead to similar or even more severe actions from regulators such as the BCSC.

What’s Next?

Businesses providing financial services online must ensure they have obtained the proper licensing and registration for every jurisdiction in which they intend to receive new users, and that they follow the regulations in the jurisdictions where those users are domiciled.

Board members and management teams should also ensure that their KYC systems are able to identify when they are engaging with users outside the jurisdictions where they are permitted to operate.

Compliance teams who identify users outside their licensed jurisdictions should be equipped to know how to escalate these instances to management in order to properly consult with local legal and regulatory advisors.

learn more

Is your AML compliance too expensive, time-consuming, or ineffective?

iComply enables financial services providers to reduce costs, risk, and complexity and improve staff capacity, effectiveness, and customer experience.

Request a demo today.

Q3 2022 Regulatory Updates
Q3 2022 Regulatory Updates

Regulatory actions and industry updates from financial authorities and regulators around the globe in Q3 2022

Protecting Digital Assets with KYC
Protecting Digital Assets with KYC

Are your KYC protocols set up to protect your customers and your digital assets? With the digital world constantly evolving and new assets entering the market, ensuring that your due diligence and identity verification platforms are up to current regulations is...

Common Challenges Facing KYC Protocols
Common Challenges Facing KYC Protocols

Do you have the right processes and protocols in place to protect against fraud, money laundering, and the many other risks that come with operating in today’s market? Know Your Customer and Customer Due Diligence, otherwise known as KYC and CDD, play a major role in...