Ontario Securities Commission has taken legal action against two crypto trading sites. Kucoin is permanently banned from participating in Ontario’s capital markets. Bybit promised to follow regulations and register at the OSC.
OSC Sanctions Crypto Trading Platforms
Tuesday’s announcement by the Ontario Securities Commission (OSC), outlined two instances in which enforcement action were taken against foreign crypto trading platforms that operate within its jurisdiction.
Bybit is a cryptocurrency trading platform that Bybit Fintech Ltd. has incorporated in British Virgin Islands. Kucoin is operated by Mek Global Ltd. and Phoenixfin Pte. Ltd., which was established in Singapore.
“Bybit and Kucoin both operate unregistered crypto asset trading platforms and allowed Ontario investors to trade securities without a prospectus or any exemption from the prospectus requirements,” the Canadian regulator explained.
The announcement regarding Kucoin states:
The OSC successfully obtained orders permanently banning Kucoin from participating in Ontario’s capital markets and requiring Kucoin to pay an administrative penalty of CAD $2,000,000.
Kucoin must also pay a further CAD $96,550.35 ($74,497) towards the costs of the OSC’s investigation.
Bybit’s settlement with regulator was reached. OSC stated that Bybit, in contrast to Kucoin’s enforcement actions, responded to it, kept an open dialog, gave requested information and was committed to participating in registration talks.
Canadian Securities Watchdog:
As part of a settlement agreement, Bybit has disgorged USD $2,468,910 and paid a further CAD $10,000 towards the cost of the OSC’s investigation.
“Bybit has also given an undertaking to the OSC, which holds the firm accountable for taking steps to bring its operations into compliance,” the regulator added. Existing Ontario retail investors will be required to end their investments in restricted products by the exchange.
The OSC instructed crypto trading platforms offering securities or derivatives trading in Ontario, to register with them by April 19th 2021 or risk being prosecuted. Canadian regulators noted that:
Bybit and Kucoin failed to contact the OSC within the time limit and they continued operating in Ontario, despite the warning.
Do you agree with the OSC taking legal action against Bybit or Kucoin? Leave your comments below.
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