OKEx Operator Alleged by Canadian Regulator for Violation of Securities Law

As per the latest reports, the regulatory authority based in Ontario, Canada has alleged the operator of OKEx for violation of securities. The regulatory authority that has taken action against OKEx’s operator is the Ontario Securities Commission (OSC). The name of the operator responsible for operating OKEx is Aux Cayes FinTech Company Limited.

The report suggests that the regulatory authority has alleged the operator has failed to comply with the policies in place for the governance and operating of securities in the Ontario Province.

The notice regarding the allegation against Aux Cayes FinTech was issued by the OSC on Wednesday, August 18, 2021. In the notice, the OSC has alleged that the company was involved in illegal activities. As a result, the exchange, as well as the operating entity, may end up facing action from the regulatory authorities in Canada.

In the allegations, the OSC adopted the view that cryptocurrencies are to be treated as derivatives and securities. As cryptocurrencies are derivatives and securities, therefore, they fall under the laws and regulations of the Ontario securities.

Therefore, the regulator has claimed that the firm Aux Cayes has badly failed in the compliance of regulations. The firm has even failed in showing any kind of cooperation with the authorities. It has even failed to comply with the prospectus and registration requirements in the region.

The OSC revealed that it had even issued a warning for firms that were operating in Ontario and providing cryptocurrency trading services. In the warning, the OSC intimated that these firms were required to align themselves with the regulations and requirements put in place by the Ontario authorities.

It was also issued in the warning that the cryptocurrency firms had until April 19 to comply with the orders. If they failed to do it, they would be met with severe regulatory actions.

The regulatory authority revealed that despite sending several notifications to the firm for a number of inquiries, the firm did not even respond to a single one. Even when the regulatory authority made contact with the firm for the release of client information, the firm did not comply or share any information.

The firm did not even provide basic level information when it was approached for the release of the information. This is the reason why the regulatory authority is forced to take action against the firm for its negligence and failure, in complying with the regulations.

The enforcement authorities have also proposed their recommendation for action against AUX Cayes. They have requested the OSC to issue orders and cease the trading activities of the OKEx in the particular region.

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