Ontario Securities Commission (OSC) Is Collecting Data On Various Crypto Trading Platforms After Statement Of Disagreement
The regulator said cryptocurrency exchanges, the place digital tokens are purchased and sold, might fall under the securities laws.
“We are aware of several cryptocurrency trading platforms operating in Ontario and are gathering information about their activities. To date, none have been recognized as an exchange, or exempted from recognition,” said Kristen Rose, spokesperson for the commission, in an email.
“These platforms, and any businesses that allow coins/tokens that are securities to trade on them may be offside securities laws,” she added.
Under Ontario law, exchanges must apply for recognition by the commission. These requisitions require organizations to depict parts of their business, including corporate governance, operations, entry requirements, fees and financial viability.
None of the platforms of OSC is searching under the lawfully recognized as exchanges in the province, or have any of them been allowed an absolution from the regulation.
Those move toward the Ontario regulator come amid the ascent of exchanges to trade digital currencies and also initial coin offerings to launch new ones. At the same time, the first bitcoin cryptocurrency is about a decade old, the sharp ascent in prices for those new currencies a year ago made a flurry of investment and start-ups on serving the new market.
Both the exchanges and initial coin offerings have been working over the grey area as regulators look to define which securities laws and regulations appropriate to the new offerings.
Those decentralized nature of the currencies and controversial matter again regulations have raised worries could reasonably be expected financial scams.
The U.S Securities and Exchange Commission has been researching some cryptocurrency exchanges and initial coin offerings and has cracked down on several.
Still, the OSC said that initial coin offerings (ICOs) specifically “present significant investor protection issues. “ Ontario’s stance towards ICOs maybe not so much hostile, however: the OSC sanctions TokenFunder’s deal in October.