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 promised to take action to comply with the rules and register with the OSC.
OSC imposes sanctions on 2 crypto trading platforms
The Ontario Securities Commission (OSC) on Wednesday announced the results of enforcement actions against two foreign cryptocurrency trading platforms operating in its jurisdiction.
The first is Bybit, a cryptocurrency trading platform operated by Bybit Fintech Ltd. registered in the British Virgin Islands. The other is Kucoin, operated by Mek Global Ltd. registered in the Republic of Seychelles, and Phoenixfin Pte. Ltd. registered in Singapore.
“Bybit and Kucoin operate unregistered crypto-asset trading platforms and allow Ontario investors to trade securities without a prospectus or any exception to the prospectus requirements,” the Canadian regulator explained.
Kucoin must also pay another C$96,550.35 ($74,497) to cover the costs of the OSC investigation.
As for Bybit, the regulator settled with the exchange. OSC explained that, unlike Kucoin, Bybit responded to its enforcement actions, maintained an open dialogue, provided requested information and committed to participate in registration discussions.
Bybit has also made a commitment to the OSC that holds the firm responsible for taking steps to bring its operations into compliance,” the regulator added. The exchange will also require existing Ontario retail investors to wind down their positions in certain restricted products.
Last March, the OSC told cryptocurrency trading platforms that offer derivatives or securities trading in Ontario to start negotiating with it to register by April 19, 2021, or face enforcement action.