Bybit and KuCoin were issued financial penalties by the Ontario Securities Commission (OSC), alleging violation of securities laws as well as operating unregistered crypto asset trading platforms as the reason for the fines.
As a result of two legal proceedings finalized on June 21 and 22, the OSC has barred Kucoin from Ontario and settled with Bybit, who has stated that they will work with the OSC to register their platform with the registry. Based on the findings of the Ontario Securities Commission (OSC), both exchanges were operating noncompliant platforms that allowed Ontario residents to trade unregistered securities.
In an announcement made on Wednesday, the Ontario regulator said that it had obtained orders barring KuCoin from participating in the province’s capital markets and fining the exchange more than $1.6 million. A settlement agreement was also announced by the OSC. As part of the settlement agreement, Bybit agreed to disgorge roughly $2.4 million and to pay the regulator $7,724 as a result of its investigation. According to the OSC, both companies failed to comply with Ontario securities laws, but only Bybit responded to the OSC’s enforcement action, maintained an open dialogue, provided requested information, and committed to engaging in registration discussions.
OSC holds global crypto asset trading platforms accountable: https://t.co/TPC9mtvTRE pic.twitter.com/Nl9pGP0U3j
— OSC News (@OSC_News) June 22, 2022
Foreign crypto asset trading platforms that want to operate in Ontario must play by the rules or face enforcement action, The outcomes announced today should serve as a clear indication that we refuse to tolerate non-compliance with Ontario securities law.
Jeff Kehoe, Director of Enforcement – OSC
The OSC has accused KuCoin of being uncooperative with its investigation in contrast to Bybit. Thus, from this point forward, the Seychelles-based exchange has been permanently barred from the Ontario capital markets.
There is no equivalent federal regulator to the Securities and Exchange Commission in Canada, as the OSC is a provincial authority. Due to its position as the regulator of Canada’s largest securities market, Ontario Securities Commission (OSC) is often recognized as a frontier in enforcing CSA determinations when they are enforced.
