“Bybit responded to the OSC’s enforcement action, maintained an open dialogue, provided requested information, and committed to engaging in registration discussions,” said the OSC.
The Ontario regulator announced on Wednesday that it had obtained orders prohibiting KuCoin from participating in the province’s capital markets and fining the exchange for more than $1.6 million. The OSC also announced that, as part of a settlement agreement, Bybit disgorged approximately $2.4 million and paid the regulator $7,724 in investigation costs. Both companies are accused of violating Ontario securities laws, but only Bybit “responded to the OSC’s enforcement action, maintained an open dialogue, provided requested information, and committed to engaging in registration discussions.”
“Foreign crypto asset trading platforms that want to operate in Ontario must play by the rules or face enforcement action,” said OSC Director of Enforcement Jeff Kehoe.
— OSC News (@OSC_News) June 22, 2022
The move by the regulatory body was the latest in a series of warnings and legal measures launched against cryptocurrency exchanges offering services to Ontario residents. The OSC issued a deadline in March 2021 for crypto firms operating in the province to register in accordance with its securities law by April. According to the regulator, Bybit will “wind up its Ontario operations” if the firm is unable to register.
Both Bybit and Kucoin are accused of failing to comply with the securities regulator, prompting hearings and other enforcement actions beginning in June 2021. The OSC had previously initiated regulatory actions against crypto exchanges Poloniex and OKX (formerly known as OKEx) for similar securities law violations.
As of June 1, eight companies, including Fidelity Digital Assets, Bitvo, and Bitbuy, are listed as registered crypto-assetcrypto asset trading platforms in Ontario.