The Canadian Securities and Exchange Commission has imposed a trading stop on the large Poloniex crypto exchange.
As if from a corresponding Notice The Ontario Securities Commission shows that Polo Digital Assets or Poloniex has violated the securities laws of the Canadian province of Ontario, which is the equivalent of a violation in all of Canada, as the OSC is the most influential Canadian stock exchange regulator.
According to the announcement, Poloniex has at no time applied for approval from the authorities, although it has encouraged Canadian investors to trade crypto financial products and crypto derivatives on its platform. “The Poloniex has neither applied for approval nor a temporary exemption from the Commission,” as the OSC said writes.
Since the crypto exchange is registered in the Seychelles, the supervisory authority of the island republic has helped its Canadian colleagues with the investigation.
The message from the OSC comes two months after the authority crypto trading platforms, which are also aimed at investors in Ontario, reminded has to adhere to the applicable securities law. Accordingly, the crypto companies concerned were asked to report to the supervisory authority by April 19, 2021 in order to negotiate any regulation.
“Despite this warning, the Poloniex did not contact the Commission until April 19, 2021,” the authority states.
For this reason, the OSC’s law enforcement department has advised the Poloniex to be permanently or at least temporarily suspended. In addition, the department demands that the crypto exchange itself may no longer acquire any securities and may not act as an investment fund.
Poloniex will be required to pay a minimum of a Canadian $ 1 million penalty for each of its failures.
Poloniex has not yet responded to Cointelegraph’s request.
“So far there is only one crypto trading platform that has been approved in Canada,” as the OSC concludes. After all, more than 70 crypto exchanges have already contacted the authority.
–
