Bybit announced that it had reached a settlement with the Ontario Securities Commission (OSC) on Thursday, a day after the OSC released the Statement of Allegations regarding the crypto asset trading platform.

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The agreement includes several steps that Bybit must take during registration negotiations with the Canadian regulator. The announcement came after the OSC imposed financial sanctions on Bybit and KuCoin, alleging violations of securities laws and use of unregistered platforms to trade crypto assets.

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Under the Settlement, Bybit withdrew revenue totaling approximately $2.47 million and reimbursed OSC $7,707 (CAD$10,000) for expenses. No additional monetary penalties were imposed on Bybit as part of the agreement.

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In addition, Bybit announced that it will not accept new accounts from Ontarians, provide any new merchandise to existing accounts owned by Ontarians, or conduct marketing and promotional activities targeted at Ontarians.

Registration negotiations are currently underway with the provincial regulator and if the process fails, Bybit will cease operations in Ontario. Investors who already own cryptocurrencies on Bybit will be required to close their positions in certain restricted products such as leveraged contracts, margin trading or loan extensions. The exchange noted that unspent or unused funds or assets of retail investors in Ontario can be used for products without restrictions or withdrawn from the Bybit platform.

Ben Zhou, co-founder and CEO of Bybit, noted in a statement that:

“We appreciate the OSC’s efforts to protect Ontario investors and look forward to working with the OSC in every way throughout the incorporation process.”

Cryptooshala reached out to Bybit for additional comments, but has not received a response as of press time. This story will be updated as more information becomes available.

Canadian regulator takes enforcement action against Bybit and KuCoin

The regulator’s decision is the latest in a string of warnings and lawsuits taken against crypto exchanges that provide services to Ontario consumers. In March 2021, the OSC set a deadline for crypto firms operating in Ontario to register under the provincial securities laws by April. Ontario has eight registered cryptocurrency trading platforms including Fidelity Digital Assets, Bitvo and Bitbuy as of June 1st.