On June 7, the Ontario Securities Commission (OSC) began implementing a legal action Against the two parent companies of crypto exchange KuCoin, Mek Global and PhoenixFin, the Canadian regulator claimed that Kucoin was operating in Ontario without complying with local securities laws.
The OSC alleges that Kucoin did not contact the regulator until April 19, the deadline it gave for crypto exchanges to register to operate in Canada or be forced to leave the country.
According to the OSC: “KuCoin has engaged or claimed to be engaged in securities trading without registration or is exempt from the registration requirement.”
Canada’s new legal action comes after allegations against Poloniex, which began in late May and also targeted crypto exchanges that are custodial under securities laws. The allegation in the Kucoin case once again articulates this logic:
“While KuCoin is intended to facilitate the trading of crypto assets in investors’ accounts, in reality, KuCoin only provides its investors with tools or contracts related to crypto assets. These instruments or contracts constitute securities and derivatives.”
Canada’s recent regulatory actions are the result of years of building up the argument that cryptocurrency exchanges are stock exchanges, while treating some cryptocurrencies as commodities. Canada’s securities regulators, at the provincial level, argue that exchanges will have to meet regulatory requirements and apply for an upgrade or will have to cease operations in the country.
Maybe you are interested:
Join our channel to update the most useful news and knowledge at:
According to The Block
Compiled by ToiYeuBitcoin
