Canadian regulator, the OSC has filed a lawsuit against cryptocurrency exchange Poloniex. The regulator accused the platform of disregarding and flouting Ontario securities law..
May 26, 2021, | AtoZ Markets – The Ontario Securities Commission (OSC) has accused crypto exchange Poloniex of violating securities law. The charges are published on the official website of the regulator.
According to the regulator, the crypto exchange does not prevent the registration of users from Canada. However, this trading platform does not meet the OSC requirements for the provision of services related to securities trading.
"Poloniex is subject to the Ontario Securities Act because the cryptocurrency products offered on Poloniex are securities and derivatives," the regulator said.
Poloniex itself did not comment on the accusations in any way. According to Ontario securities law, only qualified traders can trade on the exchange. Meanwhile, Poloniex violated the law by providing access to trading to all users, the regulator said.
OSC also said that at the end of March it notified the crypto exchange about the violation of the law and gave it time until April 19 to bring its business in line with Ontario law. Nevertheless, Poloniex ignored the warning, summed up in OSC.
Now the Commission intends to fine Poloniex $830,000. The regulator also demanded that the exchange stop providing its services to Canadian citizens. The first court sessions in the case are scheduled for June 18.
It is worth noting that the Seychelles exchange has repeatedly drew criticism in the cryptocurrency community. For example, in February 2020, Poloniex erased all trading history and canceled all withdrawal requests, citing a system glitch. In April of the same year, the exchange was criticized for sudden technical failures amid the volatility of bitcoin.
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