The Ontario Securities Commission (OSC) has imposed financial penalties on Bybit and KuCoin for allegedly violating securities laws and operating an unregistered crypto asset trading platform.
In Wednesday’s announcement, the Ontario regulator Say It has obtained an order banning KuCoin from participating in the province’s capital markets and fined the exchange more than $1.6 million. OSC also announced that, as part of the settlement, Bybit returned approximately $2.4 million and paid the regulator $7,724 as part of its investigation costs. Neither company allegedly complied with Ontario securities laws, but only Bybit “responded to OSC’s enforcement actions, maintained an open dialogue, provided requested information, and committed to participating in registration discussions.”
“Foreign crypto asset exchanges that want to operate in Ontario must follow the rules or face enforcement action,” said OSC enforcement director Jeff Kehoe.
— OSC News (@OSC_News) June 22, 2022
The regulator’s move is the latest in a series of moves Warnings and legal action against cryptocurrency exchanges Serving Ontario residents. In March 2021, the OSC issued a deadline for crypto companies operating in the province to register under securities laws by April. According to the regulator, Bybit will “wind up its Ontario operations” if the company fails to register.
Bybit and Kucoin allegedly not complying with Work with securities regulators to facilitate hearings and other enforcement actions beginning in June 2021. The OSC has taken regulatory action against cryptocurrency exchanges Poloniex and OKX (formerly known as OKEx) for similar violations of securities laws.
As of June 1, there were 8 companies list As an Ontario registered crypto asset trading platform, including Fidelity Digital Assets, Bitvo and Bitbuy.