The Ontario Securities Commission says it’s investigating a $6,000 trade involving two online crypto-currency exchanges.
The commission says a tradesman in North Lakeland and an investor in Lakeland made about $4,000 from an exchange offering $4.75 in bitcoin.
The Ontario Taxpayers’ Association says the tradesman has not yet been charged and that the exchange is still open.
The regulator says it has received two reports of trades made by the same person that did not comply with the rules.
The ICOs are being marketed as a way for individuals and businesses to transfer funds between themselves without the need for a bank account or bank-issued credentials.
The Ontario Securities and Exchange Commission says the Ontario Taxpayer’s Association is investigating a tradesmen from North Shore who made about US$4,200 from an online exchange offering US$2.50 in bitcoin and a similar transaction in Lake, which has about half as many residents.
The exchange was open from Nov. 5 to Dec. 12, but it closed its doors on Dec. 14, the commission said in a statement.
The TxDOT also said the tradesmen were trading in an exchange that is not licensed and did not provide a “safe harbor” for their bitcoin purchases.
The TxSAC said the person trading in the North Shore exchange had previously made trades in the same exchange, which the commission says did not have a “safeguard exemption” for trading in its “primary” market.
The ICOs in the Toronto area and in the greater Toronto area are not regulated by the TxDC, which is part of the TSC, and have not been approved for trading, the regulator said.
The Toronto exchange is now in the process of withdrawing its licence and its operators have not yet received approval to continue trading.
The Ontario Tax Board, which regulates online crypto exchanges in the province, said it’s aware of the investigation and is reviewing the matter.
The agency said it has not received any complaints from users.