Home Cryptocurrency Ontario Securities Commission Snuffs out Crypto Exchanges, Poloniex Targeted for Flouting Compliance

Ontario Securities Commission Snuffs out Crypto Exchanges, Poloniex Targeted for Flouting Compliance

by Serge Shlykov

Ontario Securities Commission (OSC) has recently taken aim at Poloniex, a US-based cryptocurrency exchange platform for failing to provide its users with sufficient warning about its lack of compliance with Canadian securities laws. In a statement on Thursday, the OSC explained that this lack of compliance has been especially egregious for Canadian residents, who have been completely cut off from the platform in an apparent attempt to evade Canadian securities law.

In a first of its kind move against cryptocurrencies, the Ontario Securities Commission (OSC) has deemed that the Canadian exchange Poloniex was running an illegal securities exchange. The OSC targeted Poloniex for its failure to register with the independent regulator and for its lack of KYC and AML protocol.

The Ontario Securities Commission (OSC), Canada’s most powerful provincial financial regulatory body, has issued a statement about the shutting down of three cryptocurrency exchanges for violating securities laws. The statement, posted on the OSCC’s website, includes the announcement that the Commission is seeking a permanent injunction against Vancouver-based cryptocurrency exchange “Poloniex.”

On Tuesday, the Ontario Securities Commission (OSC) released documents alleging that Seychelles-based cryptocurrency exchange Poloniex failed to contact the OSC to initiate compliance discussions. Poloniex falls under the OSC’s jurisdiction because the trading platform manages trading accounts for Ontario residents, according to the OSC’s misconduct report.

OSC says Poloniex did not contact Ontario regulator

According to Ontario’s top financial regulator, the Ontario Securities Commission (OSC) has sent out citations to crypto asset trading platforms that offer digital currency services to Ontario citizens. The 29th. In March, the letter informed them that they had to bring their companies into compliance with Ontario’s securities laws or else face regulatory action. The announcement also informed the exchanges that the companies had to register by the 19th. April 2021 to contact OSC to begin discussions on compliance. However, the latest CSO report highlights that Seychelles-based cryptocurrency exchange Poloniex has reportedly not contacted the regulator. The OSC noted that a process has been developed for virtual asset providers to follow. There is a process for crypto asset trading platforms to comply with Ontario securities laws. Organizations like Poloniex that disrupt this compliance process expose Ontario investors to unacceptable risk and create an uneven playing field in the crypto asset trading platform industry, the report continues.

Other digital currency traders not named, OSC demands fines against Poloniex

The report does not mention other digital currency exchanges that have complied with the warnings, or others that may have circumvented the warnings. OSC litigation and enforcement officials want Poloniex to cease trading in securities or derivatives permanently or for a period of time determined by the Commission. In addition, the law enforcement agency wants Poloniex to be banned from purchasing securities forever or until the CSO is satisfied. The regulator’s Office of Enforcement is also trying to force Poloniex out: Payment of an administrative fine of up to $1 million for each violation of the Ontario securities laws. The requested order is dated May 25, 2021 and was prepared by Charlie Pettipi, Judicial Affairs Advisor at OSC. The author argues that Poloniex should also bear the costs of the investigation and that a proposed order is appropriate in the public interest. What are your thoughts on the Ontario Securities Commission’s recent report on Poloniex and the requested decisions? Let us know what you think in the comments below.

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Cryptocurrency compliance, cryptocurrencies, enforcement, lawsuit, Ontario, Ontario Securities Commission, Ontario Supervisory Authority, OSC, OSC department, Poloniex, warning Poloniex, rules, regulator, Seychelles Photo credit: Shutterstock, Pixabay, Wiki Commons Denial: This article is for information only. It is not a direct offer or invitation to buy or sell, nor is it a recommendation or endorsement of any goods, services or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author shall be liable, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services referred to in this article.The Ontario Securities Commission (OSC) has issued a cease trade order against Poloniex, a cryptocurrency exchange, which has cost the company its right to operate in Canada. The cease trade order, which affects all of Poloniex’s operations in Canada, was issued after the OSC determined they had “failed to meet the minimum requirements for a dealer under the Securities Act, as they have not entered into a dealer agreement with the OSC.”. Read more about binance shut down and let us know what you think.

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