Regulation News

Crackdown imminent on Canada crypto firms linked to KuCoin

TL;DR Breakdown

  • Regulators in Canada after two crypto firms linked with Kucoin
  • OSC says KuCoin did not comply with regulatory laws in the country

The Ontario Securities Commission (OSC) has said it would take enforcement action against two Canada crypto firms linked with cryptocurrency exchange KuCoin. The regulator says the crypto firms would face the wrath of the law for failing to meet relevant securities laws.

Previously, Polo Digital Assets, Ltd., a Seychelles-based company that operates cryptocurrency exchange Poloniex in Canada, had the regulator’s wrath to face.

Now, the OSC has come for two Canada crypto firms linked with KuCoin for reportedly missing the deadline to get in compliance with Ontario securities laws.

Months back, the regulators asked crypto firms to comply with security laws in the province to offer derivatives or securities trading in Ontario.

Platforms were given until April 19, 2021, to discuss how to bring their operations as a dealer or marketplace into compliance. Additionally, the OSC stated that platforms that allow access to Ontarians are regarded by the OSC as operating in Ontario for the purposes of securities regulation.

Most Canada crypto firms in the region initiated compliance process with the regulators except these firms linked with KuCoin.

In an announcement on Monday, the OSC identified the two companies as Mek Global Limited and PhoenixFin Pte Ltd. for failing to comply with Ontario securities law.

OSC, in a statement of allegation, noted that KuCoin is operating an unregistered crypto asset trading platform where residents trade crypto asset products that are securities and derivatives.

Temporary sanction OSC wants for Canada crypto firms linked to KuCoin

The regulator’s staff notes that they want the commission to order KuCoin to cease trading securities either permanently or for a period specified by the regulator.

Both Mek Global and PhoenixFin also face administrative penalties to the tune of up to $CAD 1 million ($827,000).

At the time of writing, KuCoin is yet to issue any response or comment on the regulators’ allegations and its looming sanction.

Also, the exchange has not responded to emails by Cryptopolitan for comments on the allegations by the OSC.

This post was last modified on June 8, 2021 3:56 pm

Muhaimin Olowoporoku

Muhaimin loves writing on crypto news aside from being a crypto enthusiast. He has a knack for analysing issues and updating people on what's happening around the globe. He believes that blockchain and cryptocurrency are the most useful systems of mutual trust ever devised.

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