The July 2024 Enforcement Roundup highlights four enforcement actions taken by the BC Securities Commission (BCSC) and the Canadian Investment Regulatory Organization (CIRO). It also includes 15 additions to the Investment Caution List.
BCSC Enforcement
BCSC Penalties
Capstone Asset Management Inc.
A Langley-based investment firm has paid $12,000 to the BCSC for failing to maintain the required level of insurance and inadequate compliance policies and procedures related to insurance.
This is the first penalty given under the 2020 amendments to the Securities Act which allowed administrative penalties to be imposed without a hearing in instances of investment market rule violations.
Read the news release for full details.
BCSC Findings
Liquitrade Ltd.
A BCSC panel has found LiquiTrade Ltd., the operator of a crypto trading platform LATOKEN, facilitated derivatives transactions without being registered and ran an illegal exchange in BC.
The BCSC has issued a Notice of Hearing against LiquiTrade as part of an effort to ensure that crypto trading platforms comply with securities regulation in Canada.
Read the news release for full details.
BCSC Sanctions
Genesis Wealth Management Corporation (Genesis)
The BCSC has suspended the registration of the Richmond-based exempt market dealer for failing to comply with multiple regulatory requirements. The indefinite suspension was a result of a compliance review that revealed significant deficiencies.
Read the news release for full details.
CIRO Enforcement
CIRO Settlement Agreement
Gulnar Carlisle
Carlisle admitted to signing a client’s signature using electronic signature platforms on approximately 84 account forms with respect to 34 clients.
Carlisle has agreed to:
- A prohibition from conducting securities related business for 6 months
- A fine of $10,000
- Costs of $2,500
Read the news release for full details.
BCSC Early Intervention
The BC Securities Commission’s Investment Caution List notifies British Columbians about unqualified investments and unregistered activity originating from outside of the province but accepts BC residents as clients.
Below are the July additions to our Investment Caution List:
Bitmex-Crypro (no relation to BitMEX)
Bitmex-Crypro claims to offer trading services for cryptocurrencies.
Bit-Assets
Bit-Assets claims to be located in Toronto, ON and it also claims to offer different types of accounts for trading in cryptocurrencies.
Alliance Reserve
Alliance Reserve claims to offer different types of accounts for trading in stocks, forex, cryptocurrencies, indices, and commodities.
CGWISE
CGWISE claims to offer different types of accounts for trading in cryptocurrencies, stocks, forex, commodities, and indices.
XEcoin
XEcoin claims to operate an online cryptocurrency trading platform and we are aware that XEcoin accepts BC residents as clients.
Nasdaqall (no relation to Nasdaq)
Nasdaqall claims to offer trading services for cryptocurrencies.
X-Bingx
Xbingx claims to be located in the Cayman Islands. They claim to operate an online cryptocurrency trading platform and we are aware that X-Bingx accepts BC residents as clients.
OroCa Lab
OroCa Lab claims to be located in Vancouver, BC. It also claims to operate an online cryptocurrency trading platform and we are aware that they accept BC residents as clients.
Future Wealth FX
Future Wealth FX claims to be located in Singapore and it also claims to offer trading services for commodities and forex.
NDAXinvestments (no relations to NDAX Canada Inc. operating as NDAX)
NDAXinvestments claims to be located in Canada and Switzerland and it also claims to offer different types of investment packages for trading in cryptocurrencies.
Reltex Group
Reltex Group claims to offer different types of accounts for trading in stocks, commodities, forex, indices, and cryptocurrencies.
Cexbit-vips
Cexbit-vips claims to offer trading services for cryptocurrencies.
Plutus Legacy Trust
Plutus Legacy Trust claims to be located in over 13 countries including the United Kingdom, Poland, Germany, France, and Chile. It also claims to offer trading services for forex, indices, commodities, stocks, ETFs, and cryptocurrencies.
PrimeLTD Inc.
PrimeLTD Inc. claims to have offices in Frankfurt and Toronto and it also claims to offer various types of accounts for trading in CFDs.
Wallex Global
Wallex Global claims to have a registered address in Vancouver, BC . They also claim to offer services through an online cryptocurrency trading platform.
Report a Concern
If you have concerns about a person or company offering an investment opportunity, please contact the BCSC Contact Centre at 604-899-6854 or 1-800-373-6393 or by e-mail at [email protected]. You can also file a complaint using BCSC’s online complaint form.
If you have information relating to fraud or serious market misconduct, you can securely submit tips through our Whistleblower program. Qualified tips may be eligible for cash rewards up to $500,000.
InvestRight.org is the BC Securities Commission’s investor education website. Subscribe to receive email updates from BCSC InvestRight.
