The OSC was in the news once more as a result of its most recent alert regarding popular cryptocurrency exchange Kucoin and other parties.
Regulators from all over the world have recently shown a greater interest in the cryptocurrency world. While some have been attempting to enforce strict controls, others have been banning platforms that are inappropriate for use in their particular jurisdictions. The Ontario Securities Commission [OSC] has received a lot of attention recently in the cryptocurrency community.
The most recent warning made note of Kucoin and its affiliates’ lack of registration to advise or trade in securities in Ontario. The alert lists 13 cryptocurrency platforms that were handling regional securities but weren’t reported. It should be emphasized that this was the second time this month alone that the OSC had criticized Kucoin.
In June, the OSC also prohibited Kucoin from conducting business in Ontario. At the same time, the OSC was seen shutting down several unregistered exchanges, including Bybit. According to OSC Director of Enforcement Jeff Kehoe,
“Foreign crypto asset trading platforms [CTPs] that want to operate in Ontario must play by the rules or face enforcement action. The outcomes announced today should serve as a clear indication that we refuse to tolerate non-compliance with Ontario securities law.”
These guidelines include adhering to the Terms and Conditions for Registered CTPs, requesting consent before providing a loan, and providing staking services. Leverage and margin also call for the final battle. Additionally, users of social media and advertising were included in the list.
Kucoin in troubled waters
More than ever, regulators are showing an interest in the cryptocurrency market. Although some companies providing these services were prepared for regulatory involvement, others, such as Kucoin, did not appear to be.
In addition to its most recent dispute with the OSC, the company also capsized in tumultuous South Korean waters. The nation’s Financial Services Commission [FSC] warned about 16 unregistered cryptocurrency platforms last week. On this list, Kucoin and Justin Sun’s Poloniex were both presents.
Although the company seems to be flourishing in other areas, the community theorizes that Kucoin may be under more regulatory pressure.
