Crypto News

Canadian Regulator Penalizes KuCoin and Bybit for Violating Securities Laws

The Ontario Securities Commission (OSC) slapped cryptocurrency exchanges KuCoin and Bybit with enforcement actions, as each corporations acted in contravention of native securities legal guidelines.

Bybit to Stop Accepting New Users From Ontario

According to an official press release on Wednesday (June 22, 2022), the OSC stated KuCoin and Bybit operated an unregistered crypto buying and selling platform. The regulator added that the exchanges bought securities to Ontario residents with out going by way of the right channel.

An announcement by the OSC Director of Enforcement Jeff Kehoe stated:

“Foreign crypto asset trading platforms that want to operate in Ontario must play by the rules or face enforcement action. The outcomes announced today should serve as a clear indication that we refuse to tolerate non-compliance with Ontario securities law”.

The Canadian watchdog stated Bybit cooperated with authorities following the enforcement motion, offered the mandatory data, and is working in the direction of registering the company. Bybit additionally reached a settlement with the OSC to pay disgorgement of $2,468,910, with one other C$10,000 ($7,711).

Meanwhile, the crypto agency is just not accepting new accounts for Ontario-based residents, providing new merchandise to present accounts held by Ontario traders, or conducting any advertising and marketing exercise focusing on residents within the province.

Bybit’s penalty comes a couple of days after the agency stated it was lowering its workforce, following related actions by Coinbase, BlockFi, and CryptoCom. A spokesperson for the crypto change stated:

“Upon the arrival of the bear market, companies globally have been affected, with many needing extensive measures to cut costs. Bybit is no exception apart from the fact that we have taken extreme steps to maintain our workforce for as long as possible during this crisis”.

KuCoin Gets Permanent Ban

Seychelles-based KuCoin, however, didn’t cooperate with investigations, in line with the OSC. Consequently, the cryptocurrency change is completely banned from collaborating in Ontario’s capital markets.

In addition to the ban, KuCoin has been fined an administrative penalty of C$2 million and one other $96,550 for the OSC’s investigation prices.

The Canadian watchdog again in March 2021 declared that crypto exchanges working in Ontario should contact the securities regulator or danger dealing with enforcement motion, with a deadline set at April 19, 2021.

Later in May 2021, the OSC accused Poloniex of violating the regulation and fined the change C$1 million.

Featured Image Courtesy of The Globe and Mail

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