The Ontario Securities Commission, or OSC, is taking tough action against two KuCoin-related companies for allegedly failing to comply with local securities laws, paving the way for further regulatory action against the cryptocurrency platform.
OSC’s target companies are Mek Global Limited, based in the Seychelles, and PhoenixFin Pte, based in Singapore. Ltd. Together, the two companies operate KuCoin, one of the fastest growing cryptocurrency exchanges in the world. KuCoin has processed more than $ 1.3 billion in cryptocurrency transactions in the last 24 hours, according to industry data as of Tuesday. This puts it in 35th place in the world among cryptocurrency exchanges.
“KuCoin operates an unregistered cryptoasset trading platform that encourages Ontarians to use the platform and allows Ontarians to trade cryptoasset products, which are securities and derivatives,” OSC said in a statement.
The Securities Regulatory Authority has previously warned cryptocurrency exchanges not to offer derivatives trading – which means they must obtain regulatory approval from the OSC in order not to face the consequences. An exchange has been given until 19 April for the company to meet the requirements.
As Cointelegraph previously reported, OSC has already taken regulatory action against Polo Digital Assets, Poloniex’s parent company, for allegedly failing to comply with Ontario’s securities laws. Like KuCoin, Poloniex allegedly did not contact the Securities and Exchange Commission until 19 April.
In recent months, Ontario has become a hub for cryptocurrency activity. This jurisdiction is now home to the first Bitcoin (BTC) funds traded in North America. His debut ETF Purpose Investments secured $ 1.3 billion in assets under management in the first two months of operations, highlighting the pent-up demand for digital assets.
Evolve Funds Group launched its second Bitcoin ETF in Ontario in February, providing direct access to BTC denominations in Canadian and US dollars.