OKEx platform charged with violating Ontario securities law

Seychelles company targeted by regulators

The Ontario Securities Commission (OSC) has said that Aux Cayes FinTech Company Limited, a legal entity in the Republic of Seychelles related to OKEx, has violated provincial securities jurisdiction.

In a statement issued on Wednesday, the OSC said Aux Cayes would be engaged in illegal activity and face regulatory action if it does not cooperate with authorities. The regulator says Aux Cayes has failed to meet the compliance requirements of provincial legislation.

According to the regulator, digital asset products offered through OKEx are considered securities and derivatives. As such, they are subject to Ontario’s securities law.

In March, the OSC issued a warning to all digital asset trading platforms operating in the Canadian province. Having to comply with the securities law by April 19, regulatory action would be initiated against violators.

At the time, OKEx issued a notice to users in Ontario and Quebec that they “should not access any of the services” on the platform.

While the enforcement team said Aux Cayes had responded to a few inquiries in June, the platform reportedly did not provide “critical information about its Ontario customers,” such as the number of accounts and total holdings on the platform.

According to the execs, the OSC should order Aux Cayes Fintech to immediately cease all digital asset activity in its jurisdiction.

If not, the Seychelles firm faces a ban on acquiring any securities and millions of dollars in fines.

Related News – Binance to end its activities in the province of Ontario

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OKEx platform charged with violating Ontario securities law

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