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

The Ontario Securities Commission (OSC) has taken action against two cryptocurrency trading platforms. Kucoin is permanently barred from participating in the Ontario capital markets. Bybit has committed to taking steps to comply with regulations and register with the OSC.

CSO Sanctions 2 Cryptocurrency Trading Platforms

The Ontario Securities Commission (OSC) announced on Wednesday the outcome 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 other is Kucoin, operated by Mek Global Ltd., incorporated in the Republic of Seychelles, and Phoenixfin Pte. Ltd., incorporated in Singapore.

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

Regarding Kucoin, the announcement says:

The OSC successfully obtained orders permanently barring Kucoin from participating in the Ontario capital markets and requiring Kucoin to pay a CAD $2,000,000 administrative penalty.

Kucoin must also pay another CAD $96,550.35 ($74,497) for the costs of the OSC investigation.

As for Bybit, the regulator reached an agreement with the exchange. The OSC explained that, unlike Kucoin, Bybit responded to its enforcement action, maintained an open dialogue, provided requested information, and agreed to participate in registration discussions.

The Canadian securities watchdog described:

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

“Bybit has also engaged with the OSC, which holds the company accountable for taking steps to bring its operations into compliance,” the regulator added. The exchange will also require existing Ontario retail investors to reduce their positions in certain restricted products.

In March of last year, the OSC told crypto trading platforms offering derivatives or securities trading in Ontario to begin registration talks by April 19, 2021, or face enforcement action. The Canadian regulator noted:

Despite this warning, Bybit and Kucoin did not contact the OSC before the deadline and continued their operations in Ontario.

What do you think about the CSO taking action against Bybit and Kucoin? Let us know in the comments section.

kevin helms

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

image credits: Shutterstock, Pixabay, Wiki Commons

DisclaimerNote: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any product, service, or company. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

Leave a Comment