Poloniex Exchange Unregistered As Per Ontario Securities Law - Might Face 1 Mln In Fine.

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Poloniex Exchange Unregistered As Per Ontario Securities Law - Might Face 1 Mln In Fine.

2021-05-26 | Selina Mathew

Canadian securities regulators have initiated a regulatory action against leading global cryptocurrency exchange Poloniex. Earlier on Tuesday, the OSC [Ontario Securities Commission] published a press release of allegations against Polo Digital Assets, also referred to as Poloniex, alleging that the firm fails to comply with Ontario securities laws. In line with the statement, Poloniex has never been registered with the agency while encouraging Canadians to use its platform and permitting Ontario residents to trade crypto derivatives and securities. “Poloniex has never filed a prospectus with the Commission or obtained an exemption from the prospectus requirement,” the OSC outlined. As Poloniex is incorporated within the Republic of Seychelles, the Seychelles Financial Services Authority has been assisting Canadian regulators within the matter, the OSC explained. The new action comes about 2 months after the OSC notified Ontario-operating crypto exchanges that they need to comply with the native securities laws or face potential regulatory action. Crypto firms were asked to contact the OSC until 19^th April 2021 so as to debate the way to bring their operations as a dealer or marketplace into compliance.

“Despite this warning, Poloniex didn't contact the Commission by 19^th April 2021 or at any time to start out compliance discussions,” the regulator added.

As such, the OSC enforcement staff requested that the commission should order Poloniex to cease trading in any securities or derivatives permanently or for a period specified by the regulator. The staff also requested to ban Poloniex from acquiring any securities and becoming a registrant as an investment fund manager. Poloniex will need to pay an administrative penalty of up to 1 Mln Canadian dollars for every failure to suit with the Ontario law, the statement reads. “Till date, there's just one crypto asset dealer registered with Canadian securities regulators,” the OSC added. To date, there are over 70 platforms that have initiated compliance discussions with Canadian securities regulators, the authority described.

Poloniex Exchange Unregistered As Per Ontario Securities Law - Might Face 1 Mln In Fine.

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