The Ontario Securities Fee claimed Aux Cayes FinTech Firm Restricted, a authorized entity within the Republic of Seychelles that operates crypto alternate OKEx, has didn’t adjust to the province’s legislation governing securities.

In an Aug. 18 discover, the Ontario Securities Fee, or OSC, alleged that Aux Cayes might have engaged in criminal activity and will face regulatory motion if it fails to cooperate with authorities. In response to the OSC, crypto asset merchandise supplied by means of OKEx are thought-about securities and derivatives, and topic to the Ontario securities legislation. The regulator claims Aux Cayes has didn’t adjust to the area’s registration and prospectus necessities.

The OSC issued a warning to all crypto asset buying and selling platforms working within the province in March that they should be in compliance with the securities legislation by April 19 or face regulatory motion. Although the regulator’s enforcement staff stated Aux Cayes did reply to restricted inquiries in June, the platform failed to supply “fundamental details about its Ontario shoppers,” together with the variety of accounts and mixture holdings.

The enforcement staff is recommending the OSC order Aux Cayes to stop all crypto buying and selling, be prohibited from buying any securities, and probably pay thousands and thousands of in penalties and disgorgement charges. In response to an Aug. 19 discover, the company has scheduled a listening to for Sept. 15 to handle the allegations.

Associated: Ontario securities regulator takes action against Kucoin

The fee has made similar allegations against Bybit, crypto alternate KuCoin and Polo Digital Belongings, the guardian firm of Poloniex. In all circumstances, the OSC alleges the platforms didn’t contact the securities regulator by the April 19 deadline and have been in violation of the securities legislation. Main crypto alternate Binance introduced in June it might cease providing services to users situated in Ontario.