Canada's Ontario Securities Commission or OSC has slapped an enforcement action against the parent companies of KuCoin, Mek Global and PhoenixFin alleging that the companies failed to comply with the state’s securities law.
Canada’s state regulator, the Ontario Securities Commission (OSC) has alleged that KuCoin firms Mek Global Limited and PhoenixFin Pte. Ltd. have violated Canada’s state securities law.
The regulator issued the statement of allegation against Seychelles-incorporated Mek Global Limited and PhoenixFin Pte. Ltd. of Singapore where both the firms are operating the KuCoin platform, saying:
"KuCoin has engaged in, or held itself out as engaging in, the business of trading in securities without the necessary registration or an applicable exemption from the registration requirement."
According to the regulator, KuCoin had failed to contact the agency by April 19, the deadline for custodial crypto exchanges operating in Canada to begin compliance to register as securities exchanges.
Apparently, the OSC had warned all crypto-assets trading platforms offering to trade in derivatives or securities in Ontario that they must get in contact with the regulator to discuss how to bring their operations into compliance or face potential regulatory action, saying:
According to the regulator, KuCoin is an unregistered crypto asset trading platform that is illegally offering trading services with securities and derivatives for Canadian citizens.
“Staff will continue to take action against non-compliant crypto-asset trading platforms and are in contact with international securities regulators to exchange information to support enforcement action” the agency warns.
A similar warning had been issued against Poloniex, another Seychelles-registered cryptocurrency exchange that began late in May that the firm had never been registered with the OSC or specified Canada as one of its ‘Restricted Territories’.