The Ontario Securities Commission (OSC) has accused Mek Global Limited and PhoenixFin Pte Ltd, associated with the KuCoin cryptocurrency exchange, of violating securities laws.
In May, OSC filed similar charges against the Poloniex exchange. Now the regulator has “attacked” two firms associated with the KuCoin exchange, claiming that they do not comply with Ontario securities laws.
Mek Global is registered in the Seychelles and is listed as KuCoin in the Terms of Service published on the exchange website. PhoenixFin Pte is a Singapore-based firm that owns the kucoin.com domain. In March 2021, OSC already warned cryptocurrency companies that, within a set timeframe, they are required to bring their platforms for trading cryptocurrency derivatives in line with the laws.
“KuCoin is an unregistered platform that allows Ontario residents to trade cryptoassets, which are securities and derivatives,” the OSC said in a statement.
The agency said it will continue to take measures to combat platforms that violate securities laws, and to interact with international regulators on these issues. The Commission expressed its gratitude for the assistance of the Seychelles Financial Services Authority (SFSA). OSC added that it is trying to protect the interests of traders by creating a fair and competitive capital market.
The OSC has demanded that KuCoin stop trading in securities and derivatives in Ontario. Mek Global and PhoenixFin will have to pay an administrative fine of up to C $ 1 million (about $ 827,000), as well as cover the costs of the investigation.
As a reminder, last year, BitMEX, a cryptocurrency derivatives exchange, was also forced to stop serving Ontario users to comply with regulatory requirements.
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