Crypto platform banned by OSC

The Capital Markets Tribunal has permanently banned XT.com from participating in Ontario’s capital markets, according to a decision announced Thursday.

Ontario Securities Commission (OSC) applied for an enforcement proceeding against XT.com on Jan. 20 “to restrain potential future misconduct,” according to the application.

The respondents were not given a chance to respond to the application. Recent changes to Ontario securities law mean that decisions can be made based on actions taken by other Canadian securities regulators.

In this case, an investigation by the Autorité des marchés financiers (AMF) found that XT.com Exchange and BZ Limited were facilitating crypto-asset transactions on a website accessible in Canada without being registered with the AMF.

The two entities did not pursue registration with the AMF or any other member of the Canadian Securities Administrators, according to the AMF.

Following that, the Tribunal administratif des marchés financiers du Québec slapped XT.com with a $2 million administrative penalty and a ban from the province.

Jonathan Got

Jonathan Got is a reporter with Advisor.ca and its sister publication, Investment Executive. Reach him at jonathan@newcom.ca.