Ontario regulator accuses KuCoin of violating securities laws – Bits Media

Ontario Securities Commission (OSC) accused Mek Global Limited and PhoenixFin Pte Ltd, related to the KuCoin cryptocurrency exchange, In violation of securities laws.

In May, OSC made similar accusations the Poloniex Exchange. Now the regulator has "hit" for two companies, related to Kucoin exchange, stated, that they do not comply with laws on Ontario securities.

Mek Global is registered in the Seychelles, and in the conditions of service, published on the exchange website, It appears as Kucoin. PhoenixFin Pte – This is a Singapore company, Owning the domain kucoin.com. In March 2021 OSC has already warned cryptocurrency companies, that within the deadline, they are required to bring their platforms for the sale of cryptocurrency derivatives in line with the laws.

“Kucoin is an unregistered platform, which allows the Ontario residents to trade cryptoactives, representing securities and derivative financial instruments ", – indicated in the OSC statement.

The department said, which will continue to take measures to combat platforms, violating laws on securities, and interact on these issues with international regulators. The commission expressed gratitude for the promotion of the Department of Financial Services of the Seychelles (SFSA). OSC added, what is trying to protect the interests of traders, Creating a fair and competitive capital market.

OSC demanded, so that Kucoin stops trading securities and derivatives in Ontario. Mek Global and Phoenixfin will have to pay an administrative fine in the amount of 1 Mill of Canadian dollars (about $827 000), and also cover expenses, related to investigation.

Recall, that last year, the Bitmex cryptocurrency derivatives exchange was also forced to stop servicing users from Ontario to comply with the requirements of the regulator.