Cryptocurrency trade In Ontarrion under the spotlight .
Investigations Start in Ontario on Cryptocurrency Trades
The Ontario Securities Commission is taking necessary measures to look into the activities undertaken by cryptocurrency trading platforms in the province. According to a statement made by Kristen Rose, a spokesperson of OSC, various complaints have been made concerning cryptocurrency trading platforms in the province.
According to her statement, cryptocurrency exchanges that allow the trade of securities instead of the necessary tokens or coins will fall afoul of security laws. All exchanges are required to apply for recognition or exemption from recognition from OSC in order to operate. None of the platforms that OSC is currently investigating have been legally recognized.
Lack of proper regulations
Authorities are finding it hard to monitor the activities of these platforms and new offerings because of their decentralized nature and lack of proper regulations. Currently, there are no clear laws that define securities and no clear regulatory framework to apply on ICOs.
The commission is only gathering information on the cryptocurrency trading platforms before they can take any necessary measures.
The actions by OSC come along with the rise of both exchanges and initial coin offering in the country. The prices of ICOs is rapidly rising creating worry among the people and the regulators.
Many states are facing the same challenges with exchanges and initial coin offering as Ontario. The U.S security and Exchanges Commission has been looking into various exchanges and ICOs in the country. They have managed to stop operations of several exchanges and ICOs. One successful action was made in February after SEC charged the founders of BitFunder with fraud. They were charged for operating unlawfully an unregistered securities exchange.
In Australia, the regulatory authorities last week also put in place new regulations for cryptocurrency exchanges. According to the new law, all exchanges in the country are expected to register and comply with anti-money laundering regulations. The exchanges that fail to do this will face criminal or civil penalties.
In their statement, Ontario Securities Commission said there are protection issues for investors and the people in general. The authorities should put in place proper measures to help regulate these platforms.