The Ontario Securities Commission (OSC) has filed a lawsuit against crypto exchange Poloniex. The regulator accuses the company of trading derivatives and unregistered shares.
In March, the Canadian securities regulator ordered firms trading digital assets in the country to register as investment dealers.
In the same month, the OSC ordered Ontario crypto exchanges to contact agency officials by April 19 in order to avoid potential enforcement action.
The regulator was contacted by 70 platforms, a quarter of which are based outside the country. Poloniex was not one of them.
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The exchange now faces a large administrative fine and other sanctions, including a temporary or complete ban on securities trading. The first hearing in the case is scheduled for next June 18.