Kucoin has been ordered by OSC to stop its crypto operations in Ontario, Canada immediately for not responding to the commission’s enforcement action which Bybit did.
The Ontario Securities Commission (OSC) announced today the approval of a settlement agreement between the OSC and Bybit Fintech Limited. However, the commission received orders permanently barring Kucoin for violating Ontario securities law.
The OSC decided in March 2021 that crypto-assett trading platforms that offer derivatives or securities trading in Ontario must contact the OSC or face legal action. The instruction to accomplish this had a three-week deadline after the announcement.
Bybit and KuCoin missed the deadline for contacting the OSC and maintained operations in Ontario. They were apprehended by the law, and the result of the imposed action was published earlier today.
“The OSC obtained orders permanently banning KuCoin from participating in Ontario’s capital markets and required the exchange platform to pay an administrative penalty of CADC 2,000,0000 and a further $96,550.35 covering costs of the OSC’s investigation.”
Bybit, on the other hand, cooperated and replied to the OSC’s enforcement action, and agreed to engage in registration discussions. Bybit agreed to pay $2,468,910 as part of a settlement agreement, plus an additional card 10,0000 to cover the cost of the OSC’s inquiry.
While registration talks are ongoing, Bybit has stated that it would not take new accounts from Ontario residents, will not offer new products to current accounts held by Ontario investors, and will not engage in any marketing or promotional activity aimed at Ontario people.
In addition, Bybit will require existing Ontario retail investors to reduce their stakes in certain prohibited products, such as contracts involving leverage, margin, or credit extension.
Any funds or assets remaining in Ontario retail investor accounts may be used for unrestricted goods or removed from the Bybit platform. If the registration talks fail, Bybit confirms that the company will cease operations in Ontario.
Bybit and KuCoin both ran unregistered crypto-assett trading platforms that allowed Ontario investors to trade assets without the need for a prospectus or an exemption from the prospectus requirements.
