Was Kucoin not prepared for the intervention of regulators?

Sahana Kiran
Source – Unsplash

The crypto-verse has lately witnessed an increased interest from regulators across the globe. While some have been trying to impose stringent regulations, a few others have been kicking out platforms unfit to operate in their respective jurisdiction. The Ontario Securities Commission [OSC] has been making a lot of news lately in the crypto sphere. Once again, with its latest alert against prominent crypto exchange Kucoin and others, the OSC was in the headlines.

The latest alert pointed out that Kucoin and its affiliates weren’t registered to deal or advise securities in Ontario. The warning highlights 13 crypto platforms that weren’t reported handling regional securities. It should be noted that this was the second time that the OSC was calling out Kucoin this month alone.

In addition, the OSC banned Kucoin from carrying operations in Ontario in June. The OSC was seen taking down multiple unregistered exchanges, including Bybit, during the same time. Jeff Kehoe, Director of Enforcement at the OSC, stated,

“Foreign crypto asset trading platforms [CTPs] that want to operate in Ontario must play by the rules or face enforcement action. The outcomes announced today should serve as a clear indication that we refuse to tolerate non-compliance with Ontario securities law.”

These rules include staying consistent with the Terms and Conditions for Registered CTPs, seeking prior approval before offering to lend, and staking services. Margin and leverage also require the last contest. Furthermore, advertising and social media users were also part of the list.

More trouble to surface around Kucoin?

Regulators have been exhibiting interest in the crypto industry now more than ever. While several businesses offering these services were organized for regulatory intervention, others, like Kucoin, did not seem as prepared.

In addition to its latest fallout with the OSC, the firm was also drowning in troubled waters in South Korea. Last week, the country’s Financial Services Commission [FSC] called out about 16 unregistered crypto platforms. Kucoin was on this list and was accompanied by Justin Sun’s Poloniex.

While the firm seemed to be thriving in other regions, the community speculates that there could be increased regulatory pressure on Kucoin.