Regulator takes action against two B.C. cryptocurrency platforms

At issue are the Nanaimo-based ezBtc.ca and the Vancouver-based Einstein Exchange

Bitcoin buttons are displayed on a table at the Inside Bitcoins conference in Berlin on Feb. 12, 2014. THE CANADIAN PRESS/AP, Frank Jordans

The B.C. Securities Commission is investigating complaints against cryptocurrency exchange ezBtc and taking court action to protect customers of crypto-asset trading platform Einstein Exchange — as the websites for both exchanges have stopped loading.

A spokeswoman for the regulator says in an e-mail that it has received several complaints about Nanaimo-based ezBtc.ca, and is commenting publicly because “customer assets are at risk.”

Separately, the commission said Monday that it has received numerous complaints about customers being unable to access their assets on the Vancouver-based Einstein Exchange. A lawyer representing the platform told the commission on Oct. 31 that it planned to shut down within 30 to 60 days “due to a lack of profit.”

The provincial regulator added that on Nov. 1 it applied to the Supreme Court for an order to appoint an interim receiver to protect any assets of Einstein Exchange. The court granted the application and appointed Grant Thornton LLP as interim receiver.

The news comes after the demise of Vancouver-based exchange QuadrigaCX, which sought creditor protection after its founder and chief executive died suddenly late last year leaving its employees unable to locate millions of dollars worth of cryptocurrency.

READ MORE: Widow of QuadrigaCX founder to hand over most assets in settlement

The commission says that to date, no crypto-asset trading platforms have been authorized to operate by the provincial regulator, and do not have the same investor protections as authorized companies.

READ MORE: Cryptocurrency exchange CEO who suddenly died leaves Kelowna house in will

The Canadian Press

Like us on Facebook and follow us on Twitter

Just Posted

Snowfall warning for Kootenay and Paulson passes

Up to 30 cm expected in mountain passes Saturday and Sunday.

Community Futures launches cannabis consultation program

The Cannabis Business Transition Initiative helps businesses move into the legal economy

Moose tests positive for Chronic Wasting Disease in northwest Montana

This is the first time the disease has been detected in the species in Montana

Castlegar woman to appear on Dragons’ Den

Happy Gut sells water kefir beverages and kits to make water kefir at home.

Green candidate reflects on South Okanagan-West Kootenay campaign

Rosslander Tara Howse talks about the highs and lows of running for office

PHOTOS: NHL honours B.C. grandma’s battle against cancer in special match

Shea Theodore’s grandmother Kay Darlington dropped the puck at a special ‘Hockey Fights Cancer’ game

Province argues in B.C. Supreme Court for smudging in schools, says it relates to curriculum

Hearing concludes in case regarding indigenous cultural practice in Vancouver Island classroom

Mosaic Forest Management announces forestry shutdown

Thousands of forestry workers in Coastal B.C. will be affected by ‘curtailment’

Appeal dismissed for B.C. man who assaulted woman in ‘thoroughly modern’ fight over phone

‘Both were seeking evidence of cheating by the other,’ says B.C. Supreme Court in Nanaimo

Homeless man allegedly swarmed by group in downtown Nelson

Justus Taylor Bisch is charged with assault causing bodily harm

Freezing rain on the way to B.C.’s Fraser Valley, Interior

Road conditions will be icy and slippery, Environment Canada warns

University of Victoria threatens any athletes who speak about rowing coach probe

Barney Williams has been accused of harassment and abuse

B.C.’s largest catholic archdiocese names 9 clergymen in sex abuse report; probes ongoing

Vancouver Archdioces presides over 443,000 parishoners in B.C.

Columbia River Treaty: ‘It is going to get tough’

B.C. negotiator tells Nelson meeting that talks are cordial, so far

Most Read