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On Monday, the OSC issued an accusation statement against Mek Global Limited and PhoenixFin Pte. Ltd. for allegedly breaking local securities laws.
The Ontario Securities Commission (OSC) has taken severe action against two KuCoin-related entities for allegedly failing to comply with local securities regulations, paving the way for additional regulatory action against the cryptocurrency platform.
The companies targeted by the OSC are Seychelles-based Mek Global Limited and Singapore-based PhoenixFin Pte. Ltd. Collectively, the companies operate KuCoin, one of the world’s fastest-growing cryptocurrency exchanges. As of Tuesday, KuCoin had processed more than $1.3 billion worth of crypto transactions over the previous 24 hours, according to industry data. That puts it in the 35th position globally among cryptocurrency exchanges.
“KuCoin is operating an unregistered crypto asset trading platform, encouraging Ontarians to use the platform, and allowing Ontario residents to trade crypto asset products that are securities and derivatives,” a statement from OSC reads.
Previously, the securities regulator advised cryptocurrency exchanges from offering derivatives trading, stating that companies must get regulatory licence from the OSC or face repercussions. Exchanges have till April 19 to put their operations in line.
The OSC has already begun regulatory action against Polo Digital Assets, Poloniex’s parent business, for allegedly failing to comply with Ontario securities regulations, as previously reported. Poloniex, like KuCoin, reportedly failed to notify the securities regulator by the April 19 deadline.
In recent months, Ontario has become a hub of bitcoin activity. The jurisdiction is currently home to the first Bitcoin (BTC) exchange-traded funds in North America. During its first two months of operation, the first Purpose Investments ETF secured $1.3 billion in assets under management, showing pent-up demand for digital assets.
In February, Evolve Funds Group introduced Ontario’s second Bitcoin ETF, providing direct exposure to Canadian and US dollar-denominated units of BTC.