The Ontario Securities Commission (OSC) has taken action against two cryptocurrency trading platforms. Kucoin is permanently banned from participating in Ontario’s capital markets. Bybit has committed to taking steps to comply with regulations and register with the OSC.
OSC Sanctions 2 Crypto Exchanges
The Ontario Securities Commission (OSC) on Wednesday announced the results of enforcement actions against two foreign cryptocurrency trading platforms operating within its jurisdiction.
The first is Bybit, a crypto trading platform operated by Bybit Fintech Ltd., incorporated in the British Virgin Islands. The other is Kucoin and Phoenixfin Pte operated by Mek Global Ltd., incorporated in the Republic of Seychelles. Ltd., incorporated in Singapore.
“Both Bybit and Kucoin operate unregistered crypto asset trading platforms and allow Ontario investors to trade securities without a prospectus or any exemption from prospectus requirements,” the Canadian regulator explained.
Regarding Kucoin, the announcement stated:
OSC successfully obtained an order permanently banning Kucoin from participating in Ontario’s capital markets and requiring Kucoin to pay an administrative fine of C$2,000,000.
Kucoin also had to pay an additional CAD 96,550.35 (USD 74,497) to cover the OSC’s investigation costs.
As for Bybit, the regulator reached a settlement with the exchange. The OSC explained that, unlike Kucoin, Bybit responds to its enforcement actions, maintains an open dialogue, provides required information, and is committed to participating in registration discussions.
Canadian securities regulators describe:
As part of the settlement, Bybit has returned $2,468,910 and paid an additional $10,000 for OSC’s investigation costs.
“Bybit has also made a commitment to OSC to hold the company responsible for taking steps to bring its operations into compliance,” the regulator added. The exchange will also require existing retail investors in Ontario to reduce their exposure to certain restricted products position.
Last March, the OSC told Ontario-based cryptocurrency exchanges offering derivatives or securities trading to begin registration discussions with them by April 19, 2021, or face enforcement action. The Canadian regulator states:
Despite this warning, Bybit and Kucoin did not contact OSC by the deadline and continue to operate in Ontario.
How do you see the OSC taking action against Bybit and Kucoin? Let us know in the comments section below.
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