OKEx under Canadian regulator’s scrutiny for alleged violation 

The Ontario Securities Commission (OSC) has previously accused ByBit, CuCoin, and Polo Digital Assets of violating the country’s financial laws.

And the latest crypto company to receive the regulator’s scrutiny is Aux Cayes Fintech Company Limited, which operates the crypto exchange OKEx. According to the Commission, the crypto exchange has failed to comply with the country’s law governing securities.

OSC also added that there is a high possibility that OKEx has conducted illegal activities, and if the crypto exchange doesn’t cooperate with authorities, the Commission said that it would pursue legal charges against OKEx.

Subject to Ontario law

In a statement, the Ontario Securities Commission said that the crypto asset products offered through OKEx are all considered derivatives and securities, therefore, it is subject to the securities law of Ontario.

The OSC claims that Aux Cayes directly broke the law by failing to comply with Ontario’s registration and prospectus requirement.

Prior to this incident, the Commission has already sent a warning to all cryptocurrency-asset trading platforms that all of them must comply with the authorities. It highlighted that regulatory actions await companies who would attempt to bypass the law’s requirements.

What’s next for OKEx?

OSC said that Aux Cayes has already responded to its inquiries, but the Commission made it clear that the company still failed to provide the basic information about its Ontario clients.

The Commission is considering a total shutdown of Aux Cayes’ crypto trading business because of its continued failure to heed its requests.

If OSC pursues this decision, the company will be prevented from acquiring any securities and might be required to pay millions of dollars in violation fees.

In light of this situation, Aux Cayes said that it would closely cooperate with Canada’s authorities and will make sure that all existing Canadian laws will finally be followed.

Image courtesy of Cointelegraph News/YouTube

Source: https://bitcoinerx.com/blockchain/okex-under-canadian-regulators-scrutiny-for-alleged-violation/