Canadian Regulators Take Action Against Non-Compliant Crypto Exchanges

Canadian regulators are taking serious actions against allegedly non-compliant crypto trading platforms after making an announcement regarding new compliance measures in the month of March. Canada’s OSC has started a regulatory action against major global crypto exchange Poloniex.

Canadian Regulators Initiates Regulatory Action Against Crypto Exchanges

The Ontario Securities Commission published a statement on Tuesday addressing the allegations against Polo Digital Assets which are also known as Poloniex. It alleged that the company has failed to comply with the Ontario securities laws.

In accordance with the statement release, Poloniex has never been registered with the agency, while encouraging Canadians to make use of this platform and allowing Ontario residents to trade crypto derivatives and securities.

The OSC wrote:

“Poloniex has never filed a prospectus with the Commission or obtained an exemption from the prospectus requirement.”

The Seychelles Financial Servies Authority has been helping Canadian regulators in the matter as Poloniex is incorporated in the Republic of Seychelles as noted by OSC.

The recent action comes about two months after the OSC notified Ontario-operating crypto exchanges that they need to comply with local securities laws or face potential regulatory action.

The Regulators on Ceasing Trading

The regulator said:

“Despite this warning, Poloniex did not contact the Commission by April 19, 2021, or at any time to start compliance discussions.”

The OSC enforcement staff requested the commission should order Poloniex to stop trading in any securities or derivatives permanently or for a period specified by the regulator.

OSC said:

“To date, there is only one crypto asset dealer registered with Canadian securities regulators.”

Poloniex will be having to pay an administrative penalty of up to 1 million Canadian dollars for each of the failures to comply with the Ontario securities law as stated in the statement.

In addition to this, it should also be known that over 70 platforms have started discussions with the Canadian securities regulators.