Ontario securities regulator takes action against Kucoin
The OSC published a statement of allegations against Mek Global Limited and PhoenixFin Pte. Ltd. on Monday for allegedly violating local securities laws.
The Ontario Securities Commission, or OSC, is taking stern action against two companies associated with KuCoin for allegedly failing to comply with local securities laws, setting the stage for further regulatory action against the cryptocurrency platform.
The companies targeted by the OSC are Seychelles-based Mek Global Limited and Singapore-based PhoenixFin Pte. Ltd. Collectively, the companies operate KuCoin, one of the world’s fastest-growing cryptocurrency exchanges. As of Tuesday, KuCoin had processed more than $1.3 billion worth of crypto transactions over the previous 24 hours, according to industry data. That puts it in the 35th position globally among cryptocurrency exchanges.
“KuCoin is operating an unregistered crypto asset trading platform, encouraging Ontarians to use the platform, and allowing Ontario residents to trade crypto asset products that are securities and derivatives,” a statement from OSC reads.
The securities regulator previously warned cryptocurrency exchanges against offering derivatives trading — namely, that they must seek regulatory approval from the OSC or face consequences. Exchanges were given until April 19 to bring their operations into compliance.