The Ontario Securities Commission (OSC) has taken action against two cryptocurrency trading platforms. Kucoin is permanently banned from participating in the Ontario capital markets. Bybit has promised to take steps to be compliant and register with the OSC.
OSC sanctions 2 crypto trading platforms
The Ontario Securities Commission (OSC) on Wednesday announced the outcome of enforcement actions against two foreign cryptocurrency trading platforms operating in its jurisdiction.
The first is Bybit, a crypto trading platform developed by Bybit Fintech Ltd. incorporated in the British Virgin Islands. The other is Kucoin operated by Mek Global Ltd. incorporated in the Republic of Seychelles and Phoenixfin Pte. Ltd. incorporated in Singapore.
“Bybit and Kucoin both operate unregistered crypto-asset trading platforms and allowed Ontario investors to trade securities without a prospectus or exemption from prospectus requirements,” the Canadian regulator said.
Regarding Kucoin, the announcement states:
The OSC successfully obtained injunctions permanently barring Kucoin from participating in the Ontario capital markets and requiring Kucoin to pay an administrative penalty of CAD$2,000,000.
Kucoin will also have to pay an additional CAD$96,550.35 ($74,497) for the cost of the OSC investigation.
As for Bybit, the regulator has settled accounts with the exchange. The OSC stated that unlike Kucoin, Bybit has responded to its enforcement actions, maintained an open dialogue, provided the requested information and committed to participate in registration discussions.
The Canadian securities regulator described:
As part of a settlement agreement, Bybit has paid out $2,468,910 and paid an additional $10,000 for the cost of the OSC investigation.
“Bybit has also made a commitment to the OSC, which holds the company accountable for taking steps to bring its operations into compliance,” the regulator added. The exchange will also require existing Ontario retail investors to reduce their positions in certain restricted products.
In March last year, the OSC asked crypto trading platforms offering derivatives or securities trading in Ontario to enter into registration talks with it or engage in enforcement action by April 19, 2021. The Canadian regulator found:
Despite this warning, Bybit and Kucoin failed to contact the OSC in a timely manner and continued operations in Ontario.
What do you think of the OSC taking action against Bybit and Kucoin? Let us know in the comments section below.
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