The Ontario Securities Commission (OSC) slapped cryptocurrency exchanges KuCoin and Bybit with enforcement actions after both companies acted in violation of local securities laws.
Bybit to stop accepting new users from Ontario
According to an official press release on Wednesday (June 22, 2022), OSC stated that KuCoin and Bybit operate an unregistered crypto trading platform. The regulator said the exchanges sold securities to residents of Ontario without passing through proper channels.
A statement from OSC Enforcement Director Jeff Kehoe said:
“Foreign crypto asset trading platforms that wish to operate in Ontario must comply with regulations or face enforcement action. The results announced today should serve as a clear indication that we are committed to non-compliance with Ontario securities law. refuse to tolerate compliance”.
The Canadian watchdog said Bybit cooperated with authorities following the enforcement action, provided the necessary information, and is working toward registering the company. Bybit entered into an agreement with OSC for a payment of $2,468,910 for a further C$10,000 ($7,711).
Meanwhile, the crypto firm is not accepting new accounts for Ontario-based residents, offering new products for current accounts held by Ontario investors, or using any marketing activity targeting residents in the province. is operating.
Bybit’s fine comes days after the firm laid off its workforce, following similar actions by Coinbase, BlockFi and Cryptocom. A spokesperson for the crypto exchange said:
“With the arrival of the bear market, companies globally have been affected, there is a need for comprehensive measures to cut costs. Bybit is no exception except for the fact that we have taken extreme steps to keep our workforce as long as possible during this crisis.
KuCoin gets permanent ban
Seychelles-based KuCoin, on the other hand, failed to cooperate with the investigation, according to the OSC. As a result, the cryptocurrency exchange has been permanently banned from participating in the capital markets of Ontario.
In addition to the ban, KuCoin has been fined an administrative fine of C$2 million and another $96,550 for the OSC’s investigation costs.
In March 2021 the Canadian watchdog announced that crypto exchanges operating in Ontario should contact securities regulatory or risk-facing enforcement action with a deadline of April 19, 2021.
Later in May 2021, OSC accused Poloniex of violating the law and fined the exchange C$1 million.
Featured image courtesy of The Globe and Mail
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