The Ontario Securities Commission (OSC) said the operator of the OKEx bitcoin exchange breached the province’s securities laws.
According to the заявлению, Seychelles-registered Aux Cayes Fintech provides residents in the Canadian region via the OKEx platform access to crypto products that qualify as securities and derivatives.
The firm, however, does not comply with registration and disclosure requirements, according to the OSC division.
In March 2021 the regulator notified crypto trading firms and platforms of the need to bring activities into line with regulatory requirements.
The Commission ruled that by 19 April they must contact OSC staff to discuss measures. Aux Cayes did not comply.
Only after the regulator’s request, around 25 June, did the company block new account registrations for Ontario residents on OKEx and add the region to the list of restricted jurisdictions.
The firm also told the OSC that it would identify Ontario-based clients with a view to closing accounts and assisting with withdrawals. However Aux Cayes refused to provide the regulator with data on the number of such users or the amount of funds in their accounts.
“As of the date of this filing, Aux Cayes allows trading of cryptocurrency products on the OKEx platform by existing Ontario resident accounts,” the OSC document states.
The OKEx operator faces sanctions, including a ban on trading cryptocurrency products and on purchasing any securities, as well as fines and reimbursement of investigation costs in relation to the company.
Earlier the OSC accused companies linked to the KuCoin exchange of securities-law violations.
In June Binance decided to cease servicing Ontario residents. In August, following its example, BitMEX followed suit.