The Ontario Securities Commission (OSC) reviews the activities of cryptocurrency trading platforms operating in the province.
Kristen Rose, a spokeswoman for the OSC, said Friday that the agency had received “a number of complaints” on platforms selling cryptocurrencies that could potentially be considered securities.
“These platforms and all the companies that allow coins / tokens that are securities to act can be subject to excessive securities laws,” she added.
According to Ontario law, exchanges must be requested by the commission. These applications require companies to describe aspects of their business, including corporate governance, operations, access requirements, fees, and financial viability.
None of the platforms on which the OSC conducts research is legally recognized as a stock exchange in the province and none of them have been exempted from the regulation.
The committee indicated that its efforts are not exhaustive, as Rose clarified that the OSC only collects “information on [platform] activities at this stage”.
The OSC has recently released a document outlining priorities for the current fiscal year, with a particular focus on cryptocurrencies. The regulator has described its objective of consumer protection, while innovation and capital formation are possible without interruption.
Nevertheless, the OSC has stated that initial currencies (ICOs), in particular, “pose significant investor protection issues”. Ontario’s attitude towards IFAs is not necessarily hostile: the OSC approved the sale of TokenFunder in Octob