Regulator issues temporary order against Vancouver crypto business

A sign at the B.C. Securities Commission office in downtown Vancouver is seen on Dec. 28, 2024. (CTV News)

B.C.’s financial markets regulator has issued a temporary order against a Vancouver-based cryptocurrency business, alleging that it is operating as an unrecognized exchange.

The executive director of the B.C. Securities Commission imposed the order against Xeltox Enterprises Ltd., which does business as Cryptomus, on Tuesday.

The order prohibits the company from trading securities or derivatives and engaging in promotional activities until June 4, at which point the executive director can apply for an extension from a panel of the BCSC.

B.C.’s Securities Act allows the commission to impose temporary orders in cases where the amount of time necessary to hold a hearing on a company’s alleged misconduct could be “prejudicial to the public interest.”

In a news release, the commission described Cryptomus as a “crypto asset trading platform.”

Such businesses are required to register with provincial or territorial securities regulators before facilitating the buying and selling of cryptocurrencies and similar assets by Canadians. They must also agree to abide by certain conditions intended to protect investors.

A list of platforms authorized to do business with Canadians can be found on the Canadian Securities Administrators website. The BCSC is a member of that organization.