The Ontario Securities Commission (OSC) published on May 25 a Statement of Allegations against Polo Digital Assets, Ltd. (Poloniex) for failing to comply with Ontario securities law.
“Poloniex, incorporated in the Republic of Seychelles, is operating an unregistered crypto asset trading platform, encouraging Canadians to use the platform, and allowing Ontario residents to trade crypto asset products that are securities and derivatives,” says the regulator.
Earlier this spring, the OSC warned crypto asset trading platforms that offer trading in derivatives or securities in Ontario that they must contact OSC staff or face potential regulatory action. Platforms were given until April 19, 2021 to discuss how to bring their operations as a dealer or marketplace into compliance.
Additionally, the OSC stated that platforms that allow access to Ontarians are regarded by the OSC as operating in Ontario for the purposes of securities regulation. Despite this warning, Poloniex did not contact the OSC, says the regulator.
To date, more than 70 platforms have initiated compliance discussions with Canadian securities regulators, adds the OSC. “Almost a quarter of these platforms are based outside of Canada. Platforms that have contacted OSC staff appear to represent those that have the largest footprint in Ontario, based on preliminary analysis,” says the regulator.
