The Ontario Securities Commission (OCS) has issued a consumer alert warning residents against unregistered cryptocurrency platforms.
The Commission’s most recent warning comes in a series of actions the regulator has taken to protect its investors from the perils associated with digital assets. The company flagged 13 companies that “are not registered to deal or advise in securities in Ontario,” and include the Seychelles-based MEK Global Limited and the Singapore-incorporated PhoenixFin Pte. Ltd, both of which collectively make up Kucoin. This is the second warning against Kucoin this month. Back in June, the OSC also successfully managed to bar Kucoin from operating and fined it $1.6 million for failing to register as a securities provider before a deadline of April 19, 2021, despite continuing to operate as an exchange. The exchange’s website was also blocked last week by South Korean authorities for operating without proper registration.
The OSC often issues warnings about harmful activities in the digital asset market. These warnings are intended to educate the public about fraud and other illegal activities so that investors can make informed decisions about their investments. The regulator also issued a similar warning in July alleging that Kucoin is an unregistered organisation.
Cryptocurrencies have increasingly fallen under the view of regulators, while the government figures out how to regulate them. Just last week the Canadian Securities Administrators (CSA) mandated that all crypto trading platforms in the country agree to certain standards before doing business. The CSA expected all companies to sign a commitment letter agreeing to certain conditions before they can operate in the country. Following the regulators’ registration requirements for digital asset trading platforms, Crypto.com complied with the agreement, making it the first crypto exchange to operate under this legislation.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
