OKEx platform accused of violating Ontario securities law

A Seychellois company targeted by regulators

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

In a statement on Wednesday, the OSC said Aux Cayes would be engaged in illegal activity and would face regulatory action if it does not cooperate with authorities. The regulatory body specifies that Aux Cayes did not meet the compliance requirements of provincial legislation.

According to the regulator, digital asset products offered through OKEx are considered securities and derivatives. In doing so, they are subject to Ontario 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 measures would be initiated against violators.

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

Although the law enforcement team said Aux Cayes responded to a few inquiries in June, the platform reportedly failed to provide “essential information about its Ontario customers,” such as the number of accounts and total assets of the platform.

Executives say the OSC should order Aux Cayes Fintech to immediately cease all digital asset activity in its territory.

In the opposite case, the Seychellois firm risks the ban on the acquisition of any securities and millions of dollars in fines.

👉 On the same topic – Binance ceases operations in the province of Ontario

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About the author: Bela Le Tiec

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