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The Ontario Securities Commission (OSC) has filed charges against Aux Cayes FinTech Company Limited, the operator of OKEx, for violating securities law. The commission made similar allegations against Bybit, KuCoin, and Polo Digital Assets.
OSC Files Charges Against OKEx
In Wednesday’s notice, the Ontario Securities Commission (OSC) alleged that Aux Cayes FinTech, the operator of OKEx, violated the Canadian province’s securities law. By failing to comply with the region’s registration and prospectus requirements, the company could face regulatory action if it fails to cooperate with authorities.
For now, the OSC wants Aux Cayes to stop offering crypto trading, barred from acquiring securities while paying an administrative penalty of millions of dollars. A hearing is scheduled on Sept. 15 to examine the complaints, per the notice.
Despite the fact that Aux Cayes responded to the regulator’s limited inquiries in June, the company failed to provide the agency with basic information about its Ontario clients such as the number of accounts and aggregate holdings.
The OSC later added that it will continue to root out non-compliant cryptocurrency exchanges operating in the province:
“Staff will continue to take action against non-compliant crypto asset trading platforms and are in contact with international securities regulators to exchange information to support enforcement action.”
Canadian Regulator on Crypto Crackdown
Similar claims have been filed by the commission against Bybit, KuCoin, and Polo Digital Assets, the parent company of Poloniex.
In March, the OSC issued a warning to all crypto-asset trading platforms that offer to trade in derivatives or securities to persons or companies located in Ontario that they must bring their operations into compliance with Ontario securities law by April 19 or face potential regulatory action.
In all cases, the regulator claimed that the platforms violated securities law by failing to contact the securities regulator by the said deadline. In June, major cryptocurrency exchange Binance announced that it will no longer provide services to users in Ontario.