Coinsquare Charged with Violating Securities Laws
Market manipulation among the charges presented by Ontario Securities Commission (OSC)
What happened?
July 14, 2020: The Ontario Securities Commission (OSC) charged Toronto-based crypto asset trading platform Coinsquare with violating Ontario securities laws, including engaging in market manipulation and misleading its clients about trading volumes.
Between July 2018 and December 2019, Coinsquare allegedly inflated its trading volumes by reporting fake or “wash” trades that represented over 90% of its trading volume. In addition, Coinsquare fired an employee who repeatedly raised concerns about the inflated trading volumes to Coinsquare’s senior management team.
Source: https://www.osc.gov.on.ca/documents/en/Proceedings-SOA/soa_20200716_coinsquare.pdf
Who is impacted?
Coinsquare management, business associates, investors, and other virtual asset service providers doing business with Coinsquare.
Why this matter?
Coinsquare and previous fraudulent virtual asset service providers such as Quadriga, Einstein, and Mount Cox continue to struggle with creating a viable and compliant business model in Canada
Internationally, companies that enter into or are considering a business relationship with Coinsquare will need to assess their anti-money laundering risk in light of this statement.
What’s next?
According to the OSC, one of Coinsqaure’s biggest failure was the decision by both management and directors not to ensure the company had strong governance and compliance in place. Coinsquare, and those doing business with the company, can expect additional scrutiny from both regulators and the market. In the meantime, Wealthsimple, an existing OSC regulated fintech, has recently entered the Canadian virtual asset market.
learn more
Is your AML compliance too expensive, time-consuming, or ineffective?
iComply enables financial services providers to reduce costs, risk, and complexity and improve staff capacity, effectiveness, and customer experience.
Request a demo today.
2025 Outlook: Data Privacy and Security in KYB, KYC, AML Compliance
In today’s rapidly changing digital landscape, data privacy and security are more crucial than ever for compliance teams. As regulations tighten and cyber threats evolve, businesses must prioritize innovative solutions. Enter edge computing, a game-changer for KYC,...
A Quick Start Guide to Beneficial Ownership Reviews
Simplify Beneficial Ownership Reviews with iComply
Streamline your due diligence process with automated data collection, verification, and reporting. Enhance compliance and reduce risk with iComply’s comprehensive solution.
The Future of Document Verification: From Frustration to Simplicity
Transforming Identity Document Verification: A Seamless Customer Experience
Tired of outdated, time-consuming document verification processes? Discover how iComply’s seamless solution enhances customer experience while ensuring security and compliance.
Revolutionizing KYC for Insurance Companies: A Smarter, Simpler Approach
KYC in Insurance: Streamlining Compliance and Building Trust
Enhance customer experience and strengthen fraud prevention with iComply’s comprehensive KYC solution for insurance companies. Streamline identity verification, risk assessment, and ongoing monitoring.