- The Ontario Securities Commission sent out a Statement of Allegations.
- It marks all the laws two companies have allegedly failed to comply with.
- The allegations are against two companies that operate KuCoin.
Ontario Securities Commission (OSC) has taken action against two companies for allegedly failing at complying with local securities laws. The two companies are associated with KuCoin — a crypto exchange platform.
The securities regulator is looking to take further regulatory action. So far, the OSC has sent out a Statement of Allegations. In particular, Seychelles-based Mek Global Limited and Singapore-based PhoenixFin Pte. Ltd, are the two companies facing the allegations.
Both companies operate KuCoin. At the time of writing, KuCoin is processing crypto transactions of more than $1.4 billion. More so, this number is just within the last 24 hrs alone.
Here are some of the main issues from the Statement of Allegations. Firstly, the document highlights the fact that KuCoin provides Ontario’s citizens with services such as deposits and trading in crypto assets.
Secondly, KuCoin is subject to the province’s securities laws due to the crypto assets available on its platform. However, KuCoin was yet to comply with the regulator’s rules. This was despite the fact that the OSC sent out a press release regarding the matter. In fact, it clearly notifies that all platforms offering derivatives and securities trading must comply with its rules.
Moreover, the press release even states that all platforms had till April 19, 2021, to comply. The two companies failed to comply in time. Consequently, they may face more than just allegations very soon.
All in all, the OSC is working hard to ensure that its citizens and their assets are always protected. Laws are made to keep all entities in check. Hence, any who fail to follow these laws are creating unacceptable risks within the crypto trading sector.
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