The Ontario Securities Commission (OSC) has slapped cryptocurrency exchanges KuCoin and Bybit in enforcement action. This is because both companies acted in violation of local securities law.
Bybit to stop accepting new users from Ontario
according to Official press release On Wednesday (June 22, 2022), OSC stated that KuCoin and Bybit operate an unregistered crypto trading platform. Regulators added that the exchange sold the securities to residents of Ontario without going through the proper route.
A statement by Jeff Keho, executive director of OSC, said:
“Foreign crypto asset trading platforms that want to operate in Ontario must comply with the rules or face enforcement measures. The results announced today refuse to tolerate violations of Ontario’s securities law. It should be a clear indication. “
The Canadian guard dog said Bybit is working with authorities following the enforcement action to provide the necessary information and work towards registering the company. Bybit also reached a settlement with OSC, making an unjustified payment of $ 2,468,910 and an additional $ 10,000 ($ 7,711).
Meanwhile, crypto companies are accepting new accounts for Ontario-based residents, offering new products to current accounts held by Ontario investors, and marketing to state residents. I haven’t been there.
Bybit’s penalty will occur a few days after the company says it is reducing its workforce. Coinbase, BlockFi, and CryptoCom. A crypto exchange spokesman said:
“With the advent of the bear market, companies around the world are being affected and many need extensive steps to reduce costs. Bybit is no exception, and the workforce during this crisis. We have taken extreme steps to keep ourselves as long as possible. “
KuCoin will be permanently banned
Meanwhile, according to the OSC, Seychelles-based KuCoin was unable to cooperate with the investigation. As a result, crypto exchanges are permanently banned from entering Ontario’s capital markets.
In addition to the ban, KuCoin was fined $ 2 million and an additional $ 96,550 for OSC investigations.
Watchdog Canada in March 2021 Cryptocurrency Exchanges Operated in Ontario Set a Deadline on April 19, 2021 to Contact Securities Regulators or Face Enforcement Measures Declared that we need to take risks.
In the second half of May 2021, OSC announced Poloniex Violate He fined C $ 1 million in exchange for the law.
Featured images provided by The Globe and Mail
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