The Ontario Securities Commission (OSC) has taken two successful enforcement actions against Bybit and Kucoin.
This was announced on June 22 by the market regulator. release that Bybit and KuCoin operated unregistered cryptocurrency trading platforms and allowed Ontarians to trade securities.
Big penalties for Bybit and KuCoin
The Bench of the Capital Markets Tribunal has ordered monetary sanctions and a market ban against Mek Global and PhoenixFin, the two companies that own and operate KuCoin.
The OSC first alerted exchanges to the offering of unregistered securities on March 29, setting a deadline of April 19 for both platforms to begin discussing registration. Despite the warning, neither Bybit nor KuCoin contacted the OSC and continued to operate in Ontario, the regulator said in a statement.
Following the enforcement action, KuCoin was permanently banned from entering Ontario and ordered to pay a C$2 million fine as well as C$96,550 for the costs of the OSC investigation.
Unlike KuCoin, which refused to respond to the OSC’s enforcement actions, Bybit engaged in an open dialogue with the regulator during the course of the investigation and provided the requested information. The exchange was able to reach an agreement with the OSC, lending about CAD 2.5 million and paying another CAD 10,000 to cover the cost of the case.
As part of the settlement agreement, Bybit will not accept new Ontarian accounts or offer any new products to existing Ontario accounts. The Exchange has made a legally binding commitment to bring its operations in Ontario into line with local securities laws.
Jeff Kehoe, director of enforcement at the OSC, said all foreign cryptocurrency trading platforms that want to operate in Ontario must comply with local regulations.
“The results announced today should be a clear indication that we refuse to tolerate non-compliance with Ontario’s securities law.”
Credit : cryptoslate.com