Canada’s Ontario Securities Commission (OSC) has taken action against Poloniex, a non-compliant cryptocurrency trading platform. OSC alleges that Poloniex, a major global cryptocurrency exchange has failed to comply with Ontario securities laws.
OSC introduced crypto trader compliance measures in March. One of the measures requires cryptocurrency trading platforms to register with OSC, which Poloniex has failed to do. However, they continue to allow Canadians to use their platform, yet they haven’t filled or obtained prospectus exemption.
OSC, however, noted that Poloniex is incorporated in Seychelles and that the Financial Services country has been assisting Canadian regulators in the matter. The OSC requires that crypto exchanges comply with local securities laws or face regulatory action.
Crypto firms were required to contact OSC before 19th April 2021, to bring their operations to compliance. Ontario Commission warned Poloniex of the 19th April 2021 deadline, but they didn’t respond.
OSC staff have requested the commission to order Poloniex to cease trading in securities or derivatives permanently or for a specified period. They also want Poloniex not to be registered as an investment fund manager.
Despite all, Poloniex has to pay an administrative penalty of up to 1 million dollars for failing to comply with Ontario securities law. Up to now, only one crypto asset dealer has registered with the Canadian securities regulator. Most crypto dealers have initiated a discussion with OSC.