Canadian regulator OSC takes action against crypto trading platforms Kucoin and Bybit – Regulation of Bitcoin News

Canadian regulator OSC takes action against crypto trading platforms Kucoin and Bybit – Regulation of Bitcoin News

The Ontario Securities and Exchange Commission (OSC) has taken action against two cryptocurrency trading platforms. Kucoin is permanently banned from participating in Ontario capital markets. Bybit has promised to take steps to comply with regulations and register with the OSC.

OSC Sanctions 2 Crypto Trading Platforms

The Ontario Securities Commission (OSC) announced on Wednesday the outcome of coercive actions against two foreign cryptocurrency trading platforms operating under its jurisdiction.

The first is Bybit, a crypto trading platform operated by Bybit Fintech Ltd., incorporated in the British Virgin Islands. The other is Kucoin, managed by Mc Global Ltd., established in the Republic of Seychelles, and Phoenixfin Pte. Ltd., established in Singapore.

“Bybit and Kucoin operate unregistered cryptocurrency trading platforms and allow Ontario investors to trade in securities without a prospectus or any exemption from the prospectus requirement,” the Canadian regulator explained.

As for Kucoin, the statement said:

The OSC has successfully obtained orders permanently prohibiting Kucoin from participating in Ontario capital markets and requiring Kucoin to pay an administrative fine of $ 2,000,000.

Kucoin must also pay an additional 96,550.35 CAD ($ 74,497) in respect of the costs of the OSC investigation.

As for Bybit, the regulator has settled with the stock market. The OSC explained that, unlike Kucoin, Bybit responded to its coercive measures, maintained an open dialogue, provided the requested information, and pledged to engage in registration discussions.

The Canadian Securities Supervisor described:

As part of the settlement agreement, Bybit set aside $ 2,468,910 and paid an additional 10,000 CAD for the costs of the OSC investigation.

“Bybit has also made a commitment to OSC, which holds the firm responsible for taking steps to coordinate its operations,” the regulator added. The exchange will also require existing Ontario retail investors to reduce their positions in certain limited products.

In March last year, the OSC told cryptocurrency trading platforms offering derivatives or securities trading in Ontario to begin registration talks with it by April 19, 2021, or face coercive measures. The Canadian regulator noted:

Despite this warning, Bybit and Kucoin did not contact the OSC by the deadline and continued to work in Ontario.

What do you think about OSC taking action against Bybit and Kucoin? Let us know in the comments section below.

Canadian regulator OSC takes action against crypto trading platforms Kucoin and Bybit – Regulation of Bitcoin News

Kevin Helms

A student of Austrian economics, Kevin found Bitcoin in 2011 and has been an evangelist ever since. His interests lie in bitcoin security, open-source systems, network effects and the crossroads between economics and cryptography.

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