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Canadian Regulator OSC Takes Action Against Crypto Trading Platforms Kucoin and Bybit

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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 promised to take action to comply with the rules and register with the OSC.

OSC Sanctions 2 Crypto Trading Platforms

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The Ontario Securities Commission (OSC) announced on Wednesday the results of enforcement actions against two foreign cryptocurrency trading platforms operating in its jurisdiction.

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The first is Bybit, a cryptocurrency trading platform operated by Bybit Fintech Ltd., registered in the British Virgin Islands. The other is Kucoin, operated by Mek Global Ltd., registered in the Republic of Seychelles, and Phoenixfin Pte. Ltd. registered in Singapore.

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“Bybit and Kucoin operate unregistered crypto asset trading platforms and allow Ontario investors to trade securities without a prospectus or any exemptions from the prospectus requirements,” the Canadian regulator explained.

As for Kucoin, the announcement says:

The OSC successfully obtained orders permanently banning Kucoin from participating in the Ontario Capital Markets and requiring Kucoin to pay an administrative fine of C$2,000,000.

Kucoin also has to pay another CA$96,550.35 ($74,497) towards the costs of the OSC investigation.

As for Bybit, the regulator has settled with the exchange. The OSC clarified that, unlike Kucoin, Bybit responded to its enforcement actions, maintained an open dialogue, provided information requested, and committed to participating in registration discussions.

The Canadian Securities Supervisory Authority described:

As part of the settlement, Bybit paid $2,468,910 and paid another $10,000 to cover the costs of the OSC investigation.

“Bybit has also made a commitment to the OSC that makes the firm responsible for taking steps to bring its operations into compliance,” the regulator added. The exchange will also require existing Ontario retail investors to roll back their positions in certain restricted products.

Last March, the OSC told cryptocurrency trading platforms that offer derivatives or securities trading in Ontario to enter registration negotiations 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 to operate in Ontario.

What do you think of the OSC’s actions against Bybit and Kucoin? Let us know in the comments below.

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Credit : news.bitcoin.com

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