Kucoin to Face Legal Action for Failing to Comply with Canadian Securities Laws

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Ontario Securities Commission (OSC) has begun taking enforcement action against the Kucoin crypto exchange owned by Mek Global and PhoenixFin. OSC says that Kucoin has failed to comply with the existing securities laws in Canada.

OSC began its enforcement actions against Kucoin on 7th June, after the crypto exchange failed to contact the regulators by the 19th April deadline. Most of the crypto exchanges operating in Canada have already initiated a compliance conversation under the new approach that requires them to register as securities.

As per the OSC, Kucoin is engaging in the trading securities, but without the necessary registration, or an exemption from registration. Another action has been initiated against Poloniex for failing to comply with OSC requirements.

The allegations against Kucoin claim that the firm facilitates the trading of crypto assets in its investors’ accounts. However, the exchange firm only provides investors with instruments or contracts of crypto assets that are similar to securities and derivatives.

The recent legal actions come after years of trying to establish a logic on how crypto exchanges should be treated. OSC says that crypto exchanges will either upgrade their registration and regulation requirements or cease operating in Canada.

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