Poloniex was never registered with the Ontario Securities Commission, according to the OSC. The hearing date is scheduled for June 18.
The Ontario Securities Commission in Canada (OSC) filed a lawsuit against the cryptocurrency exchange Polo Digital Assets LTD, better known as Poloniex, for allegedly violating the securities laws of that Canadian province. .
The information emerges from a document consigned on May 25, 2021. According to the statement, Poloniex has never registered with the agency , while encouraging Canadians to use its platform and allowing Ontario residents to trade derivatives and cryptographic securities. “Poloniex has never submitted a prospectus to the Commission or obtained an exemption from the prospectus requirement,” the OSC wrote.
Through this document, which was also published in French, the date of the hearing was set for the upcoming June 18 . Similarly, it clarifies that “if a party does not attend, the hearing may proceed in the absence of the party and the party will not be entitled to any additional notification in the procedure.”
Poloniex does not comply with search warrant, says the OSC
It is worth remembering that last March, the Canadian securities regulator ordered companies that trade digital assets in the country to register as investment agents .
During that month, the OSC directed Ontario crypto exchanges to contact agency officials by April 19 with a view to avoiding potential enforcement action .
On that occasion, the regulator was contacted by 70 platforms, a quarter of which are based outside the country. Apparently Poloniex was not in this group .
In light of this situation, the OSC’s enforcement staff requested that the Commission order Poloniex to stop trading securities or derivatives permanently or for a period specified by the regulator. The officials also requested to prohibit Poloniex from acquiring securities and becoming a registrant as a mutual fund manager .
The exchange now faces a large administrative fine and other penalties , including a temporary or complete ban on trading securities.
As Poloniex is based in the Republic of Seychelles (in Africa), the Seychelles Financial Services Authority has been assisting Canadian regulators in this matter, the OSC noted.
Even the directors of the exchange have not commented on the matter.
As recently published by CriptoNoticias, Poloniex long-lived exchange of Bitcoin and other cryptocurrencies , announced , on September 2, 2020, the launch of futures of the native cryptocurrency of Ethereum , among the trading options of its platform.
The exchange house already had bitcoin (BTC) futures on its platform . On that date, he added the cryptocurrency native ethereum (ETH) to its more than 100 markets, including margin trading and loans in various criptomonedas.