Law in Quebec

News about Quebec legal developments


Securities

  • Crypto-asset exchange platforms under the spotlight

    The Quebec financial watchdog is clamping down on foreign crypto-asset trading platforms.

    Barely two months after a Dubai-based crypto-asset trading platform operating without a licence in Quebec was fined $2 million and ordered to cease trading in the province, the Financial Markets Administrative Tribunal (Tribunal) sanctioned the operators behind Hong Kong-based Coinex.com and its entities.

    The Tribunal imposed an an administrative penalty of $2 million on Coinex and its entities, on a joint and several basis, and an administrative penalty of $300,000 against  its founder Haipo Yang.  CoinEx Global Limited, founded in 2017, also trades as CoinEx and CoinEx.com, CoinEx Global Limited (CoinEx Canada), CoinEx Global Limited (CoinEx Estonia) and Vino Global Limited (Vino Global). The Tribunal also ordered the CoinEx entities, Vino Global Limited, and Haipo Yang to permanently block access to the site within two months following the ruling.

    The decisions by the administrative tribunal reaffirms the resolve by securities watchdogs to protect investors from non-compliant crypto-asset trading platforms firms, according to legal experts.

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  • Quebec Court of Appeal harmonizes securities law with other provinces

    The Quebec Court of Appeal eliminated a tactical advantage that could have emerged by launching national class actions in secondary market misrepresentation cases in the province after it held that Quebec securities rules were designed to be harmonized with provincial securities legislation across the country as a matter of substantive law.

    In a closely watched decision by class action and securities experts, the Quebec appellate court overturned a lower court ruling and found that parties seeking leave to launch an action for secondary market misrepresentations under the Québec Securities Act (Act) are not entitled to compel a public issuer defendant to disclose documents and information for the purpose of the leave proceedings.

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Law in Quebec
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