Canadian regulator OSC takes action against crypto exchanges Kucoin and Bybit – Regulation Bitcoin News

The Ontario Securities Commission (OSC) has taken action against two cryptocurrency exchanges. Kucoin is permanently banned from participating in the capital markets of Ontario. Bybit promised to take steps to comply with the regulations and register with the OSC.

OSC Penalties 2 Cryptocurrency Trading Platforms

On Wednesday, the Ontario Securities Commission (OSC) announced the results of enforcement actions against two cryptocurrency exchanges operating in its jurisdiction.

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

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

Regarding Kucoin, the announcement states the following:

The OSC succeeded in obtaining orders that permanently ban Kucoin from participating in the capital markets of Ontario and require Kucoin to pay an administrative fine of C$2,000,000.

Kucoin will also have to pay an additional C$96,550.35 ($74,497) to cover OSC investigation costs.

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

The Canadian Securities and Exchange Commission described:

As part of a settlement agreement, Bybit has written off $2,468,910 and paid an additional CAD 10,000 to cover the cost of the OSC investigation.

“Bybit has also made a commitment to the OSC, which holds the company responsible for taking steps to make its operations compliant,” the regulator added. The exchange will also require existing retail investors in Ontario to reduce their positions on certain prohibited products.

In March last year, the OSC told crypto exchanges offering derivatives or securities trading in Ontario to begin registration discussions with them 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 about OSC taking action against Bybit and Kucoin? Let us know in the comments section below.

Kevin Helms

Kevin, an Austrian economics student, found Bitcoin in 2011 and has been a missionary ever since. His interests lie in Bitcoin security, open source systems, network effects, and the intersection of economics and cryptography.

photo credits: Shutterstock, Pixabay, Wikicommons

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