"Inquiry about whether it's asserted that all account balances could be forfeit following Canada's initial shutdown of crypto exchange, TradeOgre"
In the ever-evolving world of cryptocurrency, Canada has been navigating the complexities of regulation, with a mix of federal oversight, provincial rules, and enforcement that has often lagged behind market realities.
The year 2014 marked a significant step forward, as Parliament amended anti-money laundering laws, making virtual currency dealers subject to registration with FINTRAC and obligations to monitor transactions and report suspicious activity. However, enforcement gaps persisted, with some exchanges allowing account creation with little or no identity verification, and registration requirements often enforced only after problems became visible.
One such problem came to light in 2019 with the collapse of QuadrigaCX, a Canadian cryptocurrency exchange. The company, which lacked robust internal controls, had poor security practices, and offered little transparency in how it handled user funds, exposed weaknesses in Canadian oversight.
Fast forward to 2021, and the Ontario Securities Commission brought an action against Bybit, a cryptocurrency trading platform, arguing it was conducting business in Ontario without the required registration. The case led to a settlement with penalties and Bybit's exit from the Canadian market.
The investigation into TradeOgre, a crypto platform, began in June 2024, with Canadian authorities not flagging the platform on their own. The tip for the investigation came from Europol. The decision to dismantle TradeOgre places Canada within a global pattern of tightening oversight of crypto platforms.
The trend towards increased regulation is not limited to Canada. In 2025, countries including France, Italy, and Austria called for expanded authority for the European Securities and Markets Authority to supervise crypto firms. Regulatory tightening has also advanced in Europe under the Markets in Crypto-Assets framework.
Across the Atlantic, the U.S. Securities and Exchange Commission has been actively enforcing regulations in the digital asset market. In 2024, the SEC filed 33 cases tied to digital asset market participants, many involving fraud or unregistered securities offerings, with monetary penalties totaling around $5 billion.
Even in Australia, the financial intelligence agency AUSTRAC ordered Binance's local arm to bring in an external auditor in 2025, citing gaps in compliance resources and governance.
As the world continues to grapple with the challenges and opportunities presented by cryptocurrency, it is clear that regulatory oversight will play a crucial role in ensuring the safety and security of investors and the wider financial system. Canada, like many other countries, is learning to walk the fine line between fostering innovation and maintaining robust regulatory frameworks.
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