The Ontario Securities Commission said that exchange operator OKEx, along with Bybit, KuCoin and Polo Digital Assets, violated the Canadian province’s securities laws.
According to a notice published by the Ontario Securities Commission (OSC), the Seychelles-registered company Aux Cayes, which operates the OKEx cryptocurrency exchange, is involved in illegal activities and could face law enforcement if it does not cooperate with the authorities.
According to OSC, the cryptocurrency products offered through OKEx are securities and derivatives and are subject to the Ontario Securities Act. The regulator claims that Aux Cayes failed to comply with regional filing and prospectus requirements.
In March, OSC issued a warning to all crypto-trading platforms operating in the province that they must comply with the securities law by April 19. Aux Cayes responded in part to the request, but was unable to provide “basic information about their customers in Ontario,” including the number of accounts and total assets.
The OSC can order Aux Cayes to stop all cryptocurrency trading, prohibit the purchase of securities, and force them to pay millions of dollars in fines and fees. According to the latest notice, the agency has set a hearing for September 15 to look at the charges.
The Commission has filed similar charges against Bybit, KuCoin and Polo Digital Asset, the parent company of the Poloniex exchange. In all cases, OSC claims that the platforms did not contact the securities regulator by the April 19 deadline and violated the securities law.
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