The Ontario Securities Commission has published a statement of allegations against Polo Digital Assets, also known as Poloniex, alleging that the firm has failed to comply with Ontario securities laws. They claim that the firm, based in Seychelles, has not registered to a crypto trading platform.
According to the statement, Poloniex has never been registered with the agency while encouraging Canadians to use its platform and allowing Ontario residents to trade crypto derivatives and securities. “Poloniex has never filed a prospectus with the Commission or obtained an exemption from the prospectus requirement,” the OSC wrote.
Previously, the OSC warned digital asset exchanges that trade securities and derivatives in the province to get in contact with the regulator. The agency further alerted the industry that the consequence of failing to do so could result in “potential regulatory action.”
Following the announcement, over 70 exchanges have had compliance discussions with the regulator. Most were foreign companies. However, Poloniex did not take part in this process.
The OSC filed a statement of allegations against the crypto exchange, accusing Poloniex of “disregarding Ontario securities law.”
The regulator claims that the firm failed to comply with the registration requirements for digital asset exchanges. Poloniex could face a C$1 million fine. They await the first hearing next month.