The Ontario Securities Commission claimed Aux Cayes FinTech Company Limited, a legal entity in the Commonwealth of Seychelles that operates crypto exchange OKEx, has failed to comply with the province's law governing securities.

In Midweek's discover, the Ontario Securities Commission, or OSC, alleged that Aux Cayes may take engaged in illegal activity and could face regulatory activity if it fails to cooperate with authorities. According to the OSC, the crypto nugget products offered through OKEx are considered securities and derivatives, and discipline to the Ontario securities law. The regulator claims Aux Cayes has failed to comply with the region'south registration and prospectus requirements.

The OSC issued a warning to all crypto-asset trading platforms operating in the province in March that they must be in compliance with the securities law by April 19 or face regulatory activity. Though the regulator'due south enforcement team said Aux Cayes did respond to limited inquiries in June, the platform failed to provide "bones data almost its Ontario clients," including the number of accounts and aggregate holdings. At the fourth dimension, OKEx issued a detect to users in Ontario and Quebec, saying they "shall non admission any of the services" on the platform.

The enforcement team is recommending that the OSC club Aux Cayes to stop all crypto trading, exist prohibited from acquiring any securities and potentially pay millions of dollars in penalties and disgorgement fees. Co-ordinate to Thursday's notice, the agency has scheduled a hearing for Sept. 15 to address the allegations.

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The commission has made similar allegations against Bybit, crypto exchange KuCoin and Polo Digital Assets, the parent company of Poloniex. In all cases, the OSC alleges that the platforms failed to contact the securities regulator by the April xix deadline and were in violation of the securities law. Major crypto substitution Binance announced in June information technology would cease providing services to users located in Ontario.