The Ontario Securities Commission (OSC) on Tuesday published a document claiming that the Seychelles-based crypto exchange, Poloniex, had failed to contact the OSC to initiate a compliance discussion. Poloniex fulfills OSC’s jurisdiction as the trading platform operates trading accounts for residents of Ontario, OSC violations and conduct report notes.
OSC says Poloniex failed to communicate with Ontario regulator
According to Ontario’s top financial regulator, the Ontario Securities Commission (OSC) sent communications to crypto-asset trading platforms that provide digital currency services to the citizens of Ontario.
On March 29, the letter stated, “They must bring their actions into compliance with Ontario securities law or face potential regulatory action.” The notice also told the exchanges that firms are required to contact the OSC by April 19, 2021 “to initiate a compliance discussion”.
although Latest OSC report It was highlighted that Polonics, a Seychelles-based crypto exchange, allegedly failed to contact the regulator. The OSC stressed that a process has been created for virtual property service providers to follow.
“Cryptocurrency is a process for asset trading platforms to bring their operations into compliance with Ontario securities law. Entities such as Polonics, which violate this compliance process, expose Ontario investors to unacceptable risks and crypto assets Trading platforms create an uneven playing field within the sector, ”the report states.
No other digital currency exchange mentioned, OSC calls for penalties against Poloniex
The report does not mention any other digital currency exchanges that have complied or others that may violate the warnings. The litigation and enforcement staff of the OSC division want Poloniex to “cease trading in any securities or derivatives permanently or for such periods as specified by the Commission.”
In addition, the enforcement wants Poloniex to be “permanently held” until the securities are acquired or the OSC is satisfied. The Regulatory Enforcement Office also wants to force Poloniex to:
Pay an administrative penalty of more than $ 1 million for each failure to comply with Ontario securities law.
The order sought by OSC’s litigation attorney Charlie Pettypes dated May 25, 2021. The author noted that polonics should also pay for investigative costs and that all proposed orders are “appropriate in the public interest”.
What do you think about the Ontario Securities Commission’s recent report on polonics and the order sought? Tell us what you think about this topic in the comments section below.
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