On the day after the Ontario Securities Commission (OSC) filed a Statement of Allegations against the crypto asset trading platform, Bybit stated that it has struck a deal with the OSC.
As part of the agreement, Bybit will take a number of steps in order to register with the Canadian regulator. OSC fines Bybit and KuCoin for allegedly violating securities rules and running unregistered crypto-asset trading platforms, prompting today’s statement.
According to the settlement agreement, the exchange has paid the OSC $7,707 (CA $10,000) in fees and disgorged income of about $2.47 million. The deal does not include any further financial penalties for Bybit.
Ontario citizens will not be able to open new accounts, receive new items from current accounts owned by Ontario investors, or be targeted by marketing and promotional activities by Bybit.
The exchange is now in registration talks with the province’s regulator, and if those talks fail, the company will suspend operations in Ontario. Existing Bybit cryptocurrency investors will be compelled to close out their holdings in prohibited products including leveraged contracts, margin trading, or credit extensions.
According to the exchange, investors in Ontario who have untapped cash or assets may use them to purchase unlimited items or withdraw them from their Bybit account.
The OSC’s efforts to safeguard investors in Ontario are much appreciated by Ben Zhou, co-founder, and CEO of Bybit, who said in a statement that the company looks forward to working with the OSC in all aspects of the registration process.
Bybit was contacted for more commentary but had not responded by the time of publication. If any new information comes to light, this article will be updated.
In the wake of a succession of warnings and legal proceedings against Ontario-based crypto exchanges, the Ontario Securities Commission has issued its latest caution.
The Ontario Securities Commission (OSC) set a deadline of April 2021 for crypto businesses operating in Ontario to register with the OSC in accordance with the province’s securities legislation. Bitvo, Fidelity Digital Assets, and Bitbuy are only three of the eight registered cryptocurrency trading platforms in Ontario as of June 1.