- The OSC said Poloniex has failed to contact them to start compliance discussions.
- Poloniex to pay a penalty fee of not more than $1 million.
The Ontario Securities Commission (OSC) issued a report claiming that Poloniex has failed to contact the OSC to start compliance discussions. Poloniex is a Seychelles-based crypto exchange.
OSC said that Poloniex meets the OSC’s jurisdiction as the trading platform runs trading accounts for Ontario residents.
According to OSC, the regulators sent reports to crypto-asset trading platforms. However, Poloniex failed to communicate with the Ontario regulators.
In the reports, OSC said,
“They must bring their operations into compliance with Ontario securities law or face potential regulatory action. The firms have to contact the OSC by April 19, 2021, to start compliance discussions.”
Also, the OSC’s report highlights that the crypto exchange, Poloniex, allegedly failed to contact the regulators. The OSC stated that they created a process for crypto service providers to follow.
In addition, the regulators added, the process enables the services to bring their operations into compliance with Ontario laws. Also, entities such as Poloniex, which flout this process, expose Ontario investors to risks. And create an odd playing field within the trading platform sector.
Further, the OSC said it wants Poloniex to halt trading in any securities or derivatives permanently. It will be for a period the commission will specify.
Moreover, authorities want Poloniex barred from getting any securities permanently until the OSC is satisfied. The regulators also said they intend to force Poloniex to pay a penalty fee of not more than $1 million. This will be for each failure to comply with the OSC.
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