Ontario securities regulator warns against Kucoin in latest alert

Quick Take

  • The OSC has issued another consumer alert warning residents of unregistered crypto platforms, including Kucoin.

The Ontario Securities Commission (OSC) has issued another consumer alert calling out a swath of crypto firms, including Kucoin and its affiliates, for not being registered to deal in the Canadian province.

The OSC issued a similar alert earlier this month that also named Kucoin as an unregistered entity. Today's alert names 13 firms, many of them crypto businesses, as companies that are not registered to deal or advise in securities in Ontario. The list includes subsidiaries of Kucoin, which the commission took aim at earlier when it successfully barred the firm from operating in Ontario with a courtroom win – one that also included a $1.6 million fine. 

The Kucoin case came as part of a wider crypto crackdown following a 2021 decision from regulators to treat custodial exchanges as securities exchanges regardless of whether the assets traded were securities. Since then, the OSC has gone after unregistered platforms.

As Kucoin has weathered the storm, CEO Johnny Lyu sought to dispel rumors that suggested the company might halt withdrawals. 

 


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About Author

Aislinn Keely joined The Block in the summer of 2019. She is a member of the outlet's policy team, holding down the legal beat. Before The Block, she lent her voice to the NPR affiliate WFUV, where she reported and anchored newscasts in addition to some podcast work. Aislinn is a proud Fordham Ram and editor-in-chief emerita of its newspaper. When she isn't writing or reporting, Aislinn is running and rock climbing.