Canadian Securities Commission Takes Action Against Poloniex
Montreal-based Poloniex, the massive cryptocurrency exchange, is being taken to court by the Canadian Securities Commission on fraud charges.
The Canadian province of Nova Scotia has filed civil charges against cryptocurrency exchange Poloniex for failing to apply for a proper license. The Commission alleges that Poloniex has failed to: – Maintain a valid, updated anti-money laundering program that complies with the requirements of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTFA); – Comply with applicable record keeping requirements; – Comply with applicable security requirements; and – Comply with applicable consumer protection requirements.
The Canadian Securities Commission (“CSC”) has issued a warning against Poloniex, a popular cryptocurrency exchange platform. The CSC is the regulator of the securities industry in the province of Quebec. In a statement to the media, the CSC advised that Poloniex is not a licensed dealer in securities under Quebec securities law. This means that Poloniex is not properly licensed and is not able to sell or trade securities.. Read more about ontario securities commission and let us know what you think.
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News from the Exchange
Polo Digital Assets has not filed a registration with the Canadian Securities Commission.
The company failed to contact the Commission within the deadline.
Poloniex must pay a fine of $1 million.
Poloniex, a worldwide cryptocurrency exchange, has been sanctioned by the Canadian Securities Commission for violating security regulations.
The Ontario Securities Commission has previously issued a warning to crypto exchanges in the province, stating that failure to comply with local securities rules would result in penalties. The OSC has invited cryptocurrency businesses to contact them by April 19, 2021, to discuss how they can bring their activities as a dealer or marketplace into compliance.
Poloniex failed to contact with the Commission by April 19, 2021, notwithstanding this notification. As a consequence, Polo Digital Assets is being investigated by the Ontario Securities Commission.
Furthermore, while enabling Canadians to trade crypto derivatives on its platform, Poloniex has not registered with the government, according to the article. According to the OSC,
“Poloniex has never filed a prospectus or received a prospectus exemption with the Commission.”
The OSC enforcement team also asked that the commission order Poloniex to cease dealing in any securities or derivatives entirely or for a certain length of time. Poloniex must also be barred from purchasing assets or operating as an investment fund manager, according to the staff.
In addition, the Financial Services Authority of the Seychelles has been helping Canadian authorities in this matter. According to the OSC, Poloniex is incorporated in the Republic of Seychelles.
Poloniex faces an administrative penalty of $1 million in Canadian dollars for each breach of Ontario securities legislation as a consequence of failing to follow the instructions, according to the statement.
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On September 12, 2017, the Canadian Securities Commission (the Commission) issued an Asset Forfeiture Order (the Order) against Poloniex, a cryptocurrency exchange platform located in Panama. The Commission’s Order stemmed from a self-regulatory organization (SRO) violation notice issued by the Financial Industry Regulatory Authority (FINRA) on May 29, 2017. The notice alleged that Poloniex violated the Securities Exchange Act of 1934 (the Exchange Act) by issuing unregistered securities.. Read more about ontario regulator crypto and let us know what you think.
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