OSC takes action against fourth non-compliant international crypto asset trading platform

TORONTO – The Ontario Securities Commission (OSC) today published a Statement of Allegations against Aux Cayes Fintech Co. Ltd. (Aux Cayes), incorporated in the Republic of Seychelles, for failing to comply with Ontario securities law. Aux Cayes operates the OKEx Platform, an unregistered crypto asset trading platform that has permitted Ontario residents to use the platform and trade crypto asset products that are securities and derivatives.

On March 29, 2021, the OSC warned crypto asset trading platforms that offer trading in derivatives or securities in Ontario that they must contact OSC staff or face potential regulatory action. Platforms were given until April 19, 2021 to discuss how to bring their operations into compliance. Additionally, the OSC stated that platforms that allow access to Ontarians are regarded by the OSC as operating in Ontario for the purposes of securities regulation.

Despite the warning, Aux Cayes did not contact the OSC to initiate compliance discussions.

Staff will continue to take action against non-compliant crypto asset trading platforms and are in contact with international securities regulators to exchange information to support enforcement action.

The OSC thanks the Seychelles Financial Services Authority for its assistance in this matter.

The mandate of the OSC is to provide protection to investors from unfair, improper or fraudulent practices, to foster fair, efficient and competitive capital markets and confidence in the capital markets, to foster capital formation, and to contribute to the stability of the financial system and the reduction of systemic risk. Investors are urged to check the registration of any persons or company offering an investment opportunity and to review the OSC investor materials available at https://www.osc.ca.

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