Canadian securities regulators have launched regulatory actions against Poloniex, a major global cryptocurrency exchange.
On Tuesday, the Ontario Securities Commission Published The allegations regarding Polo Digital Assets (also known as Poloniex) stated that the company did not comply with Ontario’s securities laws.
According to the statement, Poloniex has never registered with the agency, while encouraging Canadians to use its platform and allowing Ontario residents to trade cryptocurrency derivatives and securities. OSC wrote: “Poloniex has never submitted a prospectus to the committee, nor has it been exempted from the prospectus requirement.”
Since Poloniex was established in the Republic of Seychelles, the Seychelles Financial Services Authority has been assisting the Canadian regulator OSC famous.
The new action took place about two months after OSC Informed Cryptocurrency exchanges operating in Ontario must comply with local securities laws or face potential regulatory actions. Cryptocurrency companies are required to contact OSC before April 19, 2021 to discuss how to make their business as a dealer or market compliant.
The regulator said: “Despite this warning, Poloniex did not begin compliance discussions before or at any time on April 19, 2021.”
Therefore, OSC law enforcement officers requested that the committee should order Poloniex to cease any securities or derivatives trading permanently or within a period specified by the regulatory agency. The staff also requested that Poloniex be prohibited from buying any securities and becoming the registered person of investment fund managers.
The statement said that for every violation of Ontario’s securities laws, Poloniex will be fined up to 1 million Canadian dollars.
Poloniex did not immediately respond to Cointelegraph’s request for comment.
OSC said: “So far, only one crypto asset dealer has registered with Canadian securities regulators.” Authorities pointed out that so far, more than 70 platforms have engaged in compliance discussions with Canadian securities regulators.