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Ontario securities regulator takes motion towards Kucoin

06/08/2021

The OSC printed an announcement of allegations towards Mek International Restricted and PhoenixFin Pte. Ltd. on Monday for allegedly violating native securities legal guidelines.

The Ontario Securities Fee, or OSC, is taking stern motion towards two corporations related to KuCoin for allegedly failing to adjust to native securities legal guidelines, setting the stage for additional regulatory motion towards the cryptocurrency platform.

The businesses focused by the OSC are Seychelles-based Mek International Restricted and Singapore-based PhoenixFin Pte. Ltd. Collectively, the businesses function KuCoin, one of many world’s fastest-growing cryptocurrency exchanges. As of Tuesday, KuCoin had processed greater than $1.3 billion price of crypto transactions over the earlier 24 hours, in line with trade information. That places it within the thirty fifth place globally amongst cryptocurrency exchanges. 

“KuCoin is working an unregistered crypto asset buying and selling platform, encouraging Ontarians to make use of the platform, and permitting Ontario residents to commerce crypto asset merchandise which might be securities and derivatives,” an announcement from OSC reads.

The securities regulator beforehand warned cryptocurrency exchanges towards providing derivatives buying and selling — particularly, that they need to search regulatory approval from the OSC or face penalties. Exchanges got till April 19 to convey their operations into compliance.

As Cointelegraph beforehand reported, the OSC has already taken regulatory motion towards Polo Digital Property, the mum or dad firm of Poloniex, for allegedly failing to adjust to Ontario securities legal guidelines. Like KuCoin, Poloniex allegedly did not contact the securities regulator by the April 19 deadline.

Ontario has turn out to be a hotbed for cryptocurrency exercise in current months. The jurisdiction is now residence to North America’s first Bitcoin (BTC) exchange-traded funds. The debut Function Investments ETF secured $1.3 billion in belongings beneath administration throughout its first two months of operation, highlighting pent-up demand for digital belongings.

Evolve Funds Group launched Ontario’s second Bitcoin ETF in February, providing direct publicity to Canadian dollar- and U.S. dollar-denominated models of BTC.