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Ernst & Young Reports That Canadian Cryptocurrency Exchange to Announce Bankruptcy

Canada has always been blockchain hub for innovations. We’ve already stated in our previous posts also, various reputed Canadian cryptocurrency exchanges, such as Coinsquare, Bitbuy, and Kraken, etc are usually undergo meticulous auditing process. 

This illustrates the lingering concerns and the urge for Canadian auditing practice.

But for now, once upon a time, the largest cryptocurrency exchange in Canada and along with installing BitXATM Sumo PRO, has now undergone the rehabilitation diagnoses from their court-designated independent auditor, Ernst & Young as this cryptocurrency company sensed rough patch of time in the past and went from bad to worse conditions for now. 

Well, as per a report dated April 1st, 2019, the exchange seems to be left over with the last resort as ‘bankruptcy’.

Yes, we refer to ‘QuadrigaCX’ that has been perplexed between the streaks of disputes on the back of the sudden demise of the CEO Gerald Cotten and incurred a heavy loss amounting a mammoth CAD $190 million (USD $143 million), which ultimately shut down in cold wallets. 

Thereafter, E&Y came up with a respite for affected investors, by stating that the company can rescue through the insolvency path, only if the streamlining process swings into the purview of Bankruptcy and Insolvency Act (BIA), which eventually directs it to bankruptcy, so that its assets could be disposed and sell-off the assets, leading to the exchange salvaging a proportion of their funds.

Furthermore, the report appended that the court-designated chief restructuring officer, Peter Wedlake and Miller Thomson LLP and Cox & Palmer, the Representative Counsel, were both in the favor of this proposition. Bankruptcy seems to be cost-effective.

While the CRA (Canada Revenue Agency), in conjunction with the federal and provincial governmental authorities tracks functions pertaining to crypto-business in Canada and generate tax incentives, external agencies have also been conducive in rendering their expertise in the concerned areas. Ernst & Young, very recently, came up with an accounting and auditing tool meant especially for accounting and preparing taxes on cryptocurrency holdings. EY introduced a new tool in the name of CAAT (Crypto-Asset Accounting and Tax) which enables both institutional and retail investors to compute and prepare taxes exclusively on cryptocurrency holdings.

Currency Strength Index: FxWirePro's hourly BTC spot index is inching towards 130 levels (which is highly bullish), while hourly USD spot index was at -5 (neutral) while articulating (at 07:22 GMT). 

For more details on the index, please refer below weblink: http://www.fxwirepro.com/currencyindex

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