The Ontario Securities Commission — the agency that oversees securities legislation in Canada’s largest province by population — is taking enforcement action against cryptocurrency exchange Poloniex for “disregarding Ontario securities law and to signal that crypto asset trading platforms flouting Ontario securities law will face regulatory action.”
- According to the Ontario Securities Commission’s statement of allegations, Poloniex allegedly breached Ontario securities law by failing to register as a crypto asset trading platform in Ontario and trading in securities without complying with prospectus requirements.
- “A process is in place for crypto asset trading platforms to bring their operations into compliance with Ontario securities law. Entities such as Poloniex, which flout this compliance process, expose Ontario investors to unacceptable risks and create an uneven playing field within the crypto asset trading platform sector,” the commission said.
- Poloniex, a cryptocurrency exchange incorporated in the Seychelles, was founded in 2014 and once owned by crypto financial services and payments company Circle, creator of the USD Coin stablecoin, before it was acquired by an investment group that includes tech entrepreneur Justin Sun, founder of cryptocurrency platform TRON.
- A hearing on the enforcement proceeding been scheduled for June 18.