February 27, 2024

Canadian regulator accused OKEx of breaking the law

The Ontario Securities Commission (OSC) said the operator of the OKEx bitcoin exchange violated the province'ssecurities.

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According to the statement, registered onSeychelles company Aux Cayes Fintech provides residents of the Canadian region, through the OKEx platform, with access to cryptocurrency products that qualify as securities and derivatives.

At the same time, the firm does not comply with legal requirements regarding registration and disclosure of information, the OSC division claims.

In March 2021, the regulator notified crypto trading companies and platforms of the need to bring activities in line with regulatory requirements.

The commission decided that by April 19, they must contact its staff to discuss the necessary measures. Aux Cayes didn't.

Only after a request from the regulator, around June 25, the company blocked the registration of new accounts of Ontario residents on OKEx and added the region to the list of jurisdictions with restrictions.

The firm also told OSC that it will identify clients.from Ontario for the purpose of closing accounts and helping with withdrawals. However, Aux Cayes refused to provide the regulator with data on the number of such users and the amount of funds on their accounts.

"As of the date of this announcement, Aux Cayes permits the trading of cryptocurrency products on the OKEx platform with existing Ontario accounts," the OSC said in the document.

Operator OKEx faces sanctions, including a ban on trading cryptocurrency products and buying any securities, as well as fines and reimbursement of the costs of investigating the company.

Previously, the OSC accused companies associated with the KuCoin exchange of violating securities laws.

In June, Binance decided to stop serving Ontario residents. In August, BitMEX followed suit.

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