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 committed to taking steps to comply with the regulations and register with the OSC.
OSC sanctions two crypto trading platforms
The Ontario Securities Commission (OSC) announced Wednesday the results of enforcement actions against two foreign cryptocurrency trading platforms operating in its jurisdiction.
The first is Bybit, a crypto trading platform operated by Bybit Fintech Ltd. incorporated in the British Virgin Islands. The second is Kucoin, operated by Mek Global Ltd. incorporated in the Republic of Seychelles, and Phoenixfin Pte. Ltd. incorporated in Singapore.
“Both Bybit and Kucoin operated unregistered crypto asset trading platforms and allowed Ontario investors to trade securities without a prospectus or exemption from prospectus requirements,” the Canadian regulator explained.
As for Kucoin, the announcement states.
The OSC was successful in obtaining an order permanently banning Kucoin from participating in Ontario’s capital markets and requiring Kucoin to pay an administrative penalty of C$2 million.
Kucoin must also pay C$96,550.35 ($74,497) in costs of the OSC’s investigation.
As for Bybit, the regulator settled with the exchange, explaining that, unlike Kucoin, Bybit responded to its enforcement action and promised to maintain an open dialogue, provide requested information, and participate in registration discussions.
The Canadian securities watchdog explained that.
As part of the settlement agreement, Bybid forfeited US$2,468,910 and paid an additional C$10,000 towards the OSC’s investigation costs.
“BuyBit has also given an undertaking to the OSC that it will be responsible for taking steps to bring its operations into compliance,” the regulator added. The exchange will also require existing retail investors in Ontario to liquidate their positions in certain restricted products.
Last March, the OSC told crypto trading platforms offering derivatives or securities trading in Ontario to begin registration talks with it by April 19, 2021 or face enforcement action. Canadian regulators noted that.
Despite this warning, Bybit and Kucoin did not contact the OSC by the deadline and continued to operate in Ontario.
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