The Canadian financial regulators have stated that OKEx crypto exchange and Aux Cayes Fintech company have broken the securities law in the province and may be brought to face regulatory actions.
The Ontario Securities Commission stated that Aux Cayes FinTech Company Limited, a legal corporation based in the Republic of Seychelles and the operator of the cryptocurrency exchange OKEx, had broken the province’s securities law.
The Ontario Securities Commission, or OSC, claimed in an Aug. 18 warning that Aux Cayes may have engaged in illegal behaviour and that the company might face regulatory action if it does not cooperate with authorities.
According to the OSC, OKEx’s crypto-asset products are securities and derivatives and are therefore subject to Ontario securities law. Aux Cayes is accused of failing to comply with the region’s registration and prospectus requirements, according to the authority.
In March, the Ontario Securities Commission (OSC) issued a warning to all crypto-asset trading platforms operating in the province, stating that they must comply with the securities law by April 19 or risk regulatory action.
Despite the fact that Aux Cayes responded to limited requests in June, the regulator’s enforcement team stated that the platform failed to provide “basic information about its Ontario clients,” such as the number of accounts and aggregate holdings.
The enforcement team is requesting that the OSC order Aux Cayes to stop trading in cryptocurrency, be barred from acquiring any securities, and pay millions in penalties and disgorgement fees.
The agency has scheduled a hearing on Sept. 15 to examine the complaints, according to an Aug. 19 notice.
Similar claims have been levelled by the commission against Bybit, KuCoin, and Polo Digital Assets, the parent business of Poloniex.
The OSC claims that the platforms violated securities law by failing to contact the securities regulator by the April 19 deadline in all cases.
Binance, a major cryptocurrency exchange, stated in June that it will no longer provide services to users in Ontario.
