Cryptocurrency News

Ontario securities regulator takes action against Kucoin

The Ontario Securities Commission, or OSC, is taking strong action against two companies affiliated with KuCoin for allegedly failing to comply with local securities laws, setting the stage for further regulatory action against the cryptocurrency platform. is.

The companies targeted by OSC are Seychelles-based Make Global Limited and Singapore-based Phoenixfin Pte. Ltd. Collectively, the companies operate KuCoin, one of the fastest growing cryptocurrency exchanges in the world. As of Tuesday, KuCoin had processed According to industry statistics, crypto transactions worth over $1.3 billion in the last 24 hours. This places it ranked 35th globally among cryptocurrency exchanges.

“Kucoin is operating an unregistered crypto asset trading platform, which encourages Ontario people to use the platform, and allows Ontario residents to trade crypto asset products,” an OSC statement said. allows.” reads.

The securities regulator previously warned cryptocurrency exchanges against offering derivatives trading – that is, they must obtain regulatory approval from the OSC or face consequences. Exchanges were given time till April 19 to bring their operations into compliance.

As previously reported by Cointelegraph, OSC has already taken Regulatory action against Polo Digital Assets, the parent company of Poloniex, for allegedly failing to comply with Ontario securities laws. Like KuCoin, Poloniex reportedly failed to contact the securities regulator by the April 19 deadline.

Ontario has become a hotbed of crypto activity in recent months. The jurisdiction is now home to the first bitcoin in North America (B T c) exchange traded funds. First Purpose Investment ETFs Secured $1.3 billion in assets under management During the first two months of its operation, the demand for digital assets has been lackluster highlighting.

development fund group Ontario’s Second Bitcoin ETF Launched In February, it offered a direct exposure to Canadian dollar- and US dollar-denominated units of BTC.