Canada’s OSC Warns Citizens About Unlicensed Crypto Firms

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Canada’s OSC (Ontario Securities Commission) has released a statement warning citizens about crypto exchanges. According to the report, the securities commission noted that some crypto exchanges in the country were unlicensed to offer securities.

Among the companies are three KuCoin-related firms. Meanwhile, the latest warning from the OSC is part of its drive and mission to protect investors from crypto-related risks.

OSC Warns Investors About Unlicensed Crypto Firms

The OSC has warned crypto investors about unregistered firms offering securities. The alert aims to warn and educate the public about the various forms of crypto fraud and illegal activities in the crypto space.

Last month, the commission released the same warning saying that KuCoin was not a registered entity. In the latest warning, the agency named thirteen crypto firms that do not have licenses to trade or offer securities. 

The list includes affiliates of KuCoin that the agency successfully forbade from conducting business in Ontario after winning a court case.

In Canada, the usage of crypto has faced intense scrutiny lately. The government has been working to regulate the sector while giving room for growth. 

According to a report by the Bank of Canada, the number of BTC holders had increased from 5% in 2020 to over 13% in 2021. The average amount of BTC in users’ wallets was about $500. However, most investors use it for speculation because of its volatility.

Crypto Regulation In Canada 

The CSA (Canadian Securities Administrators) has released certain guidelines for crypto exchanges. Crypto platforms must adhere to these guidelines before they can operate in the country.

The OSC had opened a pre-registration window for unregistered crypto platforms to register for a license. The crypto platform, Crypto.com finished the pre-registration process.

This made Crypto.com the first crypto platform to function under the legislation. Therefore, crypto products that the securities regulator approves would be available on the crypto exchange. 

Furthermore, the Pre-Registration Undertaking noted that Crypto.com complied with the regulations set by the AMF (Autorité des Marchés Financiers and FINTRAC (Financial Transactions and Reports Analysis Center of Canada) in Quebec. 

Meanwhile, Canada’s OSC has been in the news lately. Last week, the securities regulator implemented an annual crypto buy limit of CAD$30,000 on some Canadians. 

Also, the restriction did not affect major cryptocurrencies such as BTC and ETH. This revelation drew wide criticism from the crypto community.

However, the OSC noted that this restriction is to protect crypto investors. Additionally, the commission believes this would create more awareness about the risks associated with crypto investments. 

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