154 Interactions, 4 today
After introducing additional compliance requirements in March, Canada’s OSC has continued to take action against allegedly non-compliant bitcoin trading sites.
Canadian securities regulators have launched a regulatory action against Poloniex, a major global cryptocurrency exchange.
On Tuesday, the Ontario Securities Commission published a statement of allegations against Polo Digital Assets, also known as Poloniex, alleging that the firm has failed to comply with Ontario securities laws.
According to the statement, Poloniex has never been registered with the agency, while encouraging Canadians to use its platform and allowing Ontario residents to trade crypto derivatives and securities. “Poloniex has never filed a prospectus with the Commission or obtained an exemption from the prospectus requirement,” the OSC wrote.
As Poloniex is incorporated in the Republic of Seychelles, the Seychelles Financial Services Authority has been assisting Canadian regulators in the matter, the OSC noted.
The new action comes about two months after the OSC notified Ontario-operating crypto exchanges that they must comply with local securities laws or face potential regulatory action. Crypto firms were asked to contact the OSC before April 19, 2021, in order to discuss how to bring their operations as a dealer or marketplace into compliance.
“Despite this warning, Poloniex did not contact the Commission by April 19, 2021 or at any time to start compliance discussions,” the regulator said.
As a result, the OSC enforcement staff requested that the commision order Poloniex to stop trading in any securities or derivatives permanently or for a specified period of time. The staff also requested that Poloniex be barred from acquiring any securities or registering as an investment fund manager.
Poloniex will face an administrative penalty of up to $1 million Canadian dollars for each violation of Ontario securities law, according to the statement.
Poloniex did not respond immediately to Cointelegraph’s request for comment.
According to the OSC, “there is currently only one crypto asset dealer registered with Canadian securities regulators.” According to the authority, more than 70 platforms have initiated compliance discussions with Canadian securities regulators.