Bybit and KuCoin, two well-known cryptocurrency exchanges, have been harshly punished by a Canadian security commission.
As Bybit and KuCoin provide non-compliant crypto-asset trading platforms to Canadian investors; the Ontario Securities Commission (OSC) declared on June 22 that enforcement measures against them had been successful. Moreover, Bybit Fintech Limited (Bybit) kept an open communication line; it supplied the required information, and participated in registration negotiations, helped the OSC and Bybit come to a settlement agreement.
Cryptos Now Face Harsher Punishments
Bybit and KuCoin are examples of non-compliant crypto-asset trading platforms, and the Ontario Securities Commission has successfully imposed regulatory fines against them. Bybit and the OSC came to a settlement agreement and exchanged commitments. However, KuCoin received significant financial penalties and a long-term market participation restriction.
Bybit agreed to pay $2,468,910 for the OSC inquiry costs and an additional Can$10,000. Additionally, Bybit provided an undertaking that requires them to put their business practices into conformity. However, KuCoin and the OSC were unable to come to a settlement. The Capital Markets Tribunal assessed a fine of Can$2,000,000 plus Can$96,550.35 for the expenses of the OSC inquiry. A permanent restriction on market participation goes along with the significant monetary penalty.
Director of Enforcement at the OSC, Jeff Kehoe, stated that foreign crypto-asset trading platforms must follow the regulations or risk sanctions if they wish to operate in Ontario. Furthermore, the results made public today should be a crystal-clear statement that we will not put up with violations of Ontario securities law.
Currently, citizens of Ontario are no longer able to register for Bybit. Hence, Bybit demands that current retail investors liquidate their holdings in several prohibited products, including contracts involving leverage, margin, or the granting of credit. Investors can withdraw from the platform or use their remaining cash for unrestricted items.