Canadian Securities Commission Takes Action Against Poloniex

Canadian Security Commission Takes Action Against Poloniex
  • Polo Digital Assets have not registered with Canadian Securities regulators.
  • The firm did not contact the Commission within the given time.
  • Poloniex has to pay $1 million as a penalty.

Canadian Securities Commission has taken action against the global cryptocurrency exchange Poloniex for breaking the security laws.

The Ontario Securities Commission has already warned crypto exchanges in Ontario to comply with local securities laws or face consequences. OSC asked the crypto companies to contact them by April 19, 2021, to examine bringing its operations as a dealer or marketplace into adherence.

Even after this announcement, Poloniex did not communicate with the Commission by April 19, 2021. As a result, the Ontario Securities Commission takes action against Polo Digital Assets.

Moreover, the report says that Poloniex has not registered with the agency, despite allowing Canadians to trade crypto derivatives using its platform. The OSC states that

“Poloniex has never filed a prospectus with the Commission or obtained a prospectus exemption.”

Additionally, the OSC enforcement staff requested that the commission should order Poloniex to stop trading in any securities or derivatives completely or for a set period-time. The staff also demands Poloniex be excluded from acquiring any securities or registering as an investment fund manager.

Besides, the Seychelles Financial Services Authority has been assisting Canadian regulators in this issue. Because, Poloniex is incorporated in the Republic of Seychelles, according to the OSC.

As a result of not following the given instructions, Poloniex is in the situation to pay an administrative penalty of $1 million in Canadian dollars, for each violation of Ontario securities law, according to the statement.

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