The AMF is taking legal action against three entities and one individual linked to the CoinEx crypto-trading platform [Advance Cash ]

MONTREAL, May 25, 2023 /CNW/ - Enabled May 24, 2023the Autorité des marchés financiers (the “AMF”) has filed an initiating document with the Financial Markets Administrative Tribunal (the “Court”) against CoinEx Global Limited (CoinEx), CoinEx Global Limited (CoinEx Canada), CoinEx Global Limited (CoinEx Estonia), Vino Global Limited and Haipo Yang.

An AMF investigation found evidence that the aforementioned entities facilitate crypto-asset transactions via the website, accessible from Quebec. These entities are subject to securities laws because they use the Website to offer a number of financial products and services that qualify as securities or derivatives. However, they are neither registered nor recognized by the AMF in any capacity whatsoever, have not drawn up a prospectus subject to visa issued by the AMF and do not benefit from a discretionary exemption. In addition, these entities do not seek registration with the AMF or any other member of the Canadian Securities Administrators (the “CSA”) in order to comply with securities legislation.

This argument is in addition to, among other things, the lawsuits brought by the AMF in March 2023 against entities linked to the crypto trading platform and is another example of the CSA's ongoing and coordinated efforts and commitment to ensure that crypto asset trading platforms comply with securities laws Canada.

The Tribunal will be called upon to rule on the evidence presented to it.

Measures taken by the AMF and the CSA to protect investors

In recent years, the AMF has issued several notices in conjunction with the CSA with a view to implementing a regulatory framework that promotes the protection of Quebec consumers who invest by crypto trading platforms.

After launching a consultation on a draft regulatory framework for crypto trading platforms in 2019 and providing guidance on the application of securities law to them in 2020, the CSA have described in more detail the regulatory framework for their activities in 2021.

In the same year, the CSA also provided guidance to crypto trading platforms on requirements relating to advertising, marketing and the use of social media.

On August 15, 2022CSA members have said they expect crypto trading platforms that operate in Canada while pursuing a registration request to provide them with a pre-registration commitment. On December 12, 2022the CSA issued an update announcing that it would strengthen this approach.

On February 22, 2023the CSA announced that crypto trading platforms that operate in Canada while pursuing their registration applications with CSA members, they are expected to provide an enhanced pre-registration undertaking to their principal regulator.

The Autorité des marchés financiers is the regulatory and supervisory body for the Québec financial sector.


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SOURCE Financial Markets Authority