Canadian Regulator OSC Takes Action Against Crypto Trading Platforms Kucoin and Bybit – The outcome of enforcement actions against two international cryptocurrency trading platforms operating in its jurisdiction were disclosed by the Ontario Securities Commission (OSC) on Wednesday.
The first is Bybit, a cryptocurrency trading platform run by Bybit Fintech Ltd., a British Virgin Islands-based company. The other is Kucoin, operated by Mek Global Ltd., incorporated in the Republic of Seychelles, and Phoenixfin Pte. Ltd., incorporated in Singapore.
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The Canadian regulator stated that “Bybit and Kucoin both run unregistered crypto asset trading platforms and permitted Ontario investors to trade securities without a prospectus or any exemption from the prospectus requirements.”
Regarding Kucoin, the announcement states:
“The Ontario Securities Commission (OSC) was successful in obtaining orders permanently banning Kucoin from taking part in the capital markets in Ontario and requiring Kucoin to pay an administrative fine of CAD $2,000,000.”
Additionally, Kucoin is required to contribute an extra $74,497 (CAD $96,550.35) to the OSC’s investigation costs.
Regarding Bybit, the regulator reached a settlement with the exchange. In contrast to Kucoin, Bybit replied to the OSC’s enforcement action, kept an open line of communication, provided the necessary data, and agreed to participate in registration discussions, according to the OSC.
The securities watchdog in Canada stated:
“Bybit disgorged USD $2,468,910 and paid an additional CAD $10,000 to the OSC’s investigation costs as part of a settlement agreement.”
The agency continued, “Bybit has also provided the OSC with an undertaking, which holds the firm accountable for taking actions to bring its operations into conformity. Additionally, the exchange will mandate that current Ontario retail investors liquidate their holdings in a number of restricted products.
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The OSC warned cryptocurrency trading platforms that provide derivatives or securities trading in Ontario in March of last year that failing to begin registration discussions with it by April 19, 2021 could result in enforcement action.
According to the Canadian regulator:
“Despite this warning, Bybit and Kucoin continued to operate in Ontario and failed to contact the OSC by the deadline.”