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"Bybit has responded to the OSC's enforcement action, maintaining an open dialogue, providing the required information and committing to participate in registration discussions," the OSC said.
The Ontario Securities Commission, or OSC, has issued financial penalties against Bybit and KuCoin, claiming to violate securities laws and operating unregistered cryptocurrency asset trading platforms.
In an announcement Wednesday, the Ontario regulator said it had received an injunction banning KuCoin from entering the province's capital markets and fined the exchange more than $1.6 million. The OSC also stated that, as part of the settlement, Bybit disbursed about $2.4 million and paid the regulator $7,724 as part of the investigation costs. Both companies were accused of failing to comply with Ontario securities laws, but only Bybit "responded to osc enforcement action, maintained an open dialogue, provided the requested information, and committed to participating in registration discussions."
OSC Enforcement Director Jeff Kehoe said: "Foreign cryptocurrency asset trading platforms that want to operate in Ontario must comply with the rules or face enforcement action."
OSC holds global crypto asset trading platforms accountable: https://t.co/TPC9mtvTRE pic.twitter.com/Nl9pGP0U3j
— OSC News (@OSC_News) June 22, 2022
The regulator's move is the latest in a series of warnings and legal actions taken against cryptocurrency exchanges that provide services to Ontario residents. In March 2021, the OSC issued a deadline for cryptocurrency companies operating in the province to register to comply with securities laws in April. According to the regulator, Bybit will "cease operations in Ontario" if the company is unable to register.
Both Bybit and Kucoin were accused of failing to comply with the securities regulator, prompting hearings and other enforcement actions to begin in June 2021. The OSC has begun legal action against cryptocurrency exchanges Poloniex and OKX (formerly known as OKEx) for violating similar securities laws.
As of June 1, there are eight companies that have been listed as registered cryptocurrency asset trading platforms in Ontario, including Fidelity Digital Assets, Bitvo, and Bitbuy.
