BCSC targets EU virtual asset platform i-Coin

Apr 29, 2020 | Compliance Updates, iComply Insights

The British Columbia Securities Commission issues regulatory warning against i-Coin, a European cryptocurrency trading platform

What Happened?

April 29, 2020: Estonia-based cryptocurrency trading platform i-Coin was found to have accepted funds from a British Columbia resident without being recognized as an exchange or registered as a dealer in B.C. According to Canadian legislation, i-Coin’s activities were regulated and the firm has been added to the IOSCO warnings list.

Source: https://www.bcsc.bc.ca/Enforcement/Investment_Caution_List/i-Coin/

Who Is Impacted?

Cryptocurrency trading platforms and virtual asset service providers (VASPs) serving Canadian residents.

Why This Matters?

Many VASPs continue to operate on a global basis, without securing the required licenses or implementing the required KYC and AML compliance systems of the jurisdictions in which they accept users. This enforcement measure signals the importance for businesses to properly secure licensing in every jurisdiction they will accepting users.

What’s Next?

By adding i-Coin to the Investment Caution List, the BCSC has sent a clear message that these practices–although common in the cryptocurrency and fintech industries–are unlawful practices and can result in public enforcement.

VASPs who serve any Canadian user should seek legal and compliance advice from local experts to ensure they have the appropriate license for every jurisdiction in Canada.

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