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 promised to take steps to comply with regulations and register with the OSC.
OSC Sanctions 2 Cryptocurrency trading platforms
The Ontario Securities Commission (OSC) announced Wednesday the outcome of enforcement actions against two foreign cryptocurrency trading platforms operating in its jurisdiction.
The first is Bybit, a cryptocurrency platform operated by Bybit Fintech Ltd., incorporated in the British Virgin Islands. The other is Kucoin, managed by Mek Global Ltd., incorporated in the Republic of Seychelles, and Phoenixfin Pte. Ltd., incorporated in Singapore.
“Bybit and Kucoin both operate unregistered cryptocurrency trading platforms and have enabled Ontario investors to trade stocks without a prospectus or any exemption from prospectus requirements,” the Canadian regulator explained.
As for Kucoin, the announcement states:
The OSC successfully secured orders permanently banning Kucoin from participating in Ontario’s capital markets and requiring Kucoin to pay a CAD $ 2,000,000 administrative fine.
Kucoin also has to pay an additional CAD $ 96,550.35 ($ 74,497) for the costs of the OSC investigation.
As for Bybit, the regulator has agreed with the exchange. The OSC explained that, unlike Kucoin, Bybit responded to his law enforcement action, maintained an open dialogue, provided the requested information and committed to participate in the registration discussions.
The Canadian Securities Supervisory Body described:
As part of a settlement agreement, Bybit threw up $ 2,468,910 USD and paid an additional $ 10,000 CAD for the cost of the OSC investigation.
“Bybit has also made a commitment to the OSC, which holds the company responsible for taking steps to bring its operations into compliance,” the regulator added. The exchange will also require existing Ontario retail investors to liquidate their positions in certain restricted products.
In March of last year, the OSC told cryptocurrency trading platforms offering derivatives or securities exchanges in Ontario to initiate registration discussions with it by April 19, 2021, or face enforcement action. The Canadian regulator noted:
Despite this warning, Bybit and Kucoin did not contact the OSC by the deadline and continued operations in Ontario.
What do you think of the action of the OSC against Bybit and Kucoin? Let us know in the comments section below.
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