Canadian regulator OSC gathers info about crypto platforms that operate in the province. According to the OSC spokeswoman, Kristen Rose, the agency has been receiving a “number of complaints” in relation to the platforms selling cryptocurrencies that can potentially qualify as securities.
9 April, AtoZForex – The regulator of the Ontario financial market, the Ontario Securities Commission (OSC) has informed the public about its plans to look into the activities of cryptocurrency trading platforms that have the presence in the province.
Canadian regulator OSC Gathers Info About Crypto Platforms
According to the OSC spokeswoman, Kristen Rose, the agency has been receiving a “number of complaints” in relation to the platforms selling cryptocurrencies that can potentially qualify as securities. She has further explained:
“These platforms, and any businesses that allow coins/tokens that are securities to trade on them, may be offside securities laws.”
In accordance with Ontario law, trading exchanges should apply for recognition by the Ontario Securities Commission. The applications require firms to elaborate on the aspects of their business. This includes corporate governance, operations, access requirements, fees and financial viability.
In fact, none of the platforms OSC is investigating has been legally recognized as an exchange in the province. In addition, none of them has been granted an exemption from the regulatory obligations.
OSC to focus on Crypto this year
The Ontario Securities Commission has also made clear that its effort is not an investigation, but rather the agency is “gathering information about activities.”
Recently, the OSC has published a document that has laid out the priorities of the agency for the current year. It is worth to note that the regulator is planning to also focus its attention on cryptocurrencies. The Canadian watchdog has described its goal as providing consumer protection while allowing innovation and capital formation to proceed without disruption.
Nevertheless, the OSC has stated that initial coin offerings (ICOs) particularly “present significant investor protection issues.” The stance of the Canadian regulator in regards to the ICOs is not hostile, as a matter of fact. Earlier in October 2017, the OSC has approved TokenFunder’s sale.
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