The regulatory bodies have been after the crypto sphere for some time throughout the world. Though a few have been attempting to implement severe regulations on the crypto venues, some others’ viewpoint has been to kick out the platforms which they do not consider to be capable of carrying out their operations within the jurisdictions thereof.
Kucoin Hit by Canada’s OSC and Categorized as a Non-Registered Exchange
Particularly, the Ontario Securities Commission (OSC) has also been in the news for its exclusive alert saying that the well-known cryptocurrency exchange forum “KuCoin” as well as several others were non-registered. The regulatory entity noted that the investors should not deal with the exchange and the rest of the 13 venues as they were not registered with the watchdog and hence not permitted to operate.
The respective alert mentioned that no deal should be carried out with these companies nor should any securities-related advice should be taken from these firms within Ontario’s jurisdiction. A noteworthy thing here is that KuCoin has been targeted on the behalf of the OSC in a single month. Apart from that, in June, the exchange has been prohibited by the regulator from running its activities in Ontario.
As mentioned by OSC’s Director of Enforcement, Jeff Kehoe, the agency has also aimed at several other unregistered exchanges in this a big name “Bybit” is also included, simultaneously. The executive disclosed that the overseas venues for crypto trading that intend to work in the jurisdiction, need to abide by the rules set for them or go through enforcement action.
In his words, the respective declaration of the regulatory body provides a clear sign that the agency cannot tolerate the non-obedience with the securities law of Ontario. The respective rules take into account consistently complying with the regulations specified for the registered crypto trading venues. A requirement for them is to gather approval in advance of providing lending, as well as the staking services.
KuCoin Appears to Have No Proper Plan
Additionally, the social media consumers and the promotional content along with the leverage and margin are also included in the list of regulations. Keen attention is being given by the regulatory agencies to the crypto market currently as never before. Though many businesses have some strategy to deal with the regulatory intervention, KuCoin and other such entities appeared to have no preparation in this respect.
In addition to the difficulties faced by the company from the OSC, KuCoin was additionally having hard times in South Korea. In the previous week, the Financial Services Commission (FSC) of the country warned sixteen unregistered crypto firms including KuCoin as well as Poloniex of Justin Sun.
Although the crypto platform is struggling in several areas, the community is of the view that enormous regulatory pressure is to be faced by KuCoin. Somehow the measures taken on the behalf of the Canadian regulator appear to be justified as it has previously notified the providers of securities and derivatives trading to get registration in April previous year.
