Canadian regulator sues Bitcoin exchange Poloniex

The Ontario Securities Commission (OSC) has filed a lawsuit against the cryptocurrency exchange Poloniex. The regulator accuses the platform of unregistered trading of securities and derivatives.

In March, the Canadian securities regulators ruled that firms trading digital assets within the country must register as investment dealers.

In the same month, the OSC ordered cryptocurrency exchanges in Ontario to contact agency officials by April 19 to avoid potential enforcement actions.

Seventy platforms approached the regulator, a quarter of which are based outside the country. Poloniex was not among them. Canadian regulators have registered only one crypto dealer.

The exchange faces a substantial administrative fine and other sanctions, up to a temporary or permanent ban on trading securities. The first hearing is set for June 18.

Earlier, the OSC approved Bitcoin ETFs from Purpose Investments and Evolve Funds Group, as well as the joint product CI Global Asset Management and Galaxy Digital's Mike Novogratz.

Soa 20210525 Polo-digital by ForkLog on Scribd