“Bybit reacted to the OSC’s enforcement action, maintained an open communication, supplied requested information, and engaged in registration talks,” the OSC said.
Bybit and KuCoin were fined by the Ontario Securities Commission (OSC) for allegedly violating securities regulations and running unregistered crypto-asset trading platforms.
The Ontario regulator said on Wednesday that it had secured orders prohibiting KuCoin from operating in the province’s capital markets and fining the exchange over $1.6 million. In addition, the OSC said that, as part of a settlement agreement, Bybit disgorged about $2.4 million and paid the regulator $7,724 to cover its investigative expenses. Only Bybit “responded to the OSC’s enforcement action, maintained an open conversation, supplied requested information, and pledged to participate in registration negotiations”
“Foreign crypto-asset trading platforms that wish to operate in Ontario must comply with the laws or risk enforcement action,” said Jeff Kehoe, director of enforcement for the Ontario Securities Commission.
The regulatory body’s action was the most recent in a string of warnings and legal measures launched against crypto exchanges providing services to Ontario citizens. The OSC announced a deadline in March 2021 for crypto businesses operating in Ontario to register in accordance with securities legislation by April. If it is unable to register, Bybit will cease operations in Ontario, according to the regulator.
Bybit and Kucoin reportedly failed to comply with the securities regulator, necessitating hearings and other enforcement measures beginning in June 2021. The OSC has previously taken regulatory action against Poloniex and OKX (formerly known as OKEx) for similar breaches of securities laws.
As of 1 June, eight firms are listed in Ontario as registered trading platforms for crypto assets, including Fidelity Digital Assets, Bitvo, and Bitbuy.