KuCoin exchange in Ontario regulator’s sights after law breaches

The Ontario Securities Commission is set to take enforcement action against two companies behind the cryptocurrency exchange KuCoin for violating the province’s securities laws.

Fast Facts:

• The OSC alleges that Seychelles-incorporated Mek Global and Singapore-incorporated PhoenixFin, which collectively comprise KuCoin, have failed to comply with Ontario securities registration and prospectus requirements.

• The regulator says enforcement action is also a signal that crypto asset trading platforms flouting Ontario securities law will face action.

• In March, the OSC warned crypto asset trading platforms offering services to Ontario residents to comply with the province’s securities laws or face enforcement action. The OSC says KuCoin had not contacted it by the stipulated April 19 deadline to begin compliance discussions.

• Last month, the OSC also took similar action against cryptocurrency exchange Poloniex for alleged securities law violations.