Canadian regulator takes enforcement action against Bybit and Kucoin

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The Ontario Securities Commission, or OSC, imposed financial sanctions on Bybit and Kucoin, alleging violations of securities laws and operating unregistered crypto-asset trading platforms.

In an announcement Wednesday, the Ontario regulator said it had obtained orders fining Kucoin more than $1.6 million and barring the exchange from participating in capital markets. Province. In a separate decision, the OSC announced that Bybit returned approximately $2.4 million and paid the regulator $7,724 as part of its investigation costs. Both companies allegedly failed to comply with Ontario securities laws, but only Bybit “responded to the OSC’s enforcement action, maintained an open dialogue, provided the requested information, and engaged in engaging in registration discussions”.

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“Foreign crypto-asset exchange platforms that want to operate in Ontario must follow the rules or face enforcement action,” OSC Director of Enforcement Jeff Kehoe said.

The regulator’s decision was the latest in a series of warnings and lawsuits filed against crypto exchanges offering services to Ontario residents. In March 2021, the OSC set a TAUT for crypto businesses operating in the province to register by April. According to the regulator, Bybit will “terminate its operations in Ontario” if the company is unable to register.

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Bybit and Kucoin reportedly failed to comply with the securities regulator, prompting hearings and other enforcement actions starting in June 2021. The OSC had previously taken regulatory action against crypto exchanges Poloniex and OKEx for similar violations of securities laws.

As of June 1, eight companies are listed as Ontario-registered crypto asset exchanges, including Fidelity Digital Assets, Bitvo and Bitbuy.

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