Canadian Securities Regulator Takes Aim at Bybit Crypto Exchange

Jafrin  |  Jun 22, 2021

The Ontario Securities Commission (OSC) published a Statement of Allegations against Bybit Fintech Limited (Bybit), a company incorporated in the British Virgin Islands for failing to comply with the Ontario securities law.

OSC Publishes a Statement of Allegations Against Bybit

Futures trading platform, Bybit was accused of operating an unregistered cryptocurrency trading platform in Ontario, according to a Statement of Allegations by the Ontario Securities Commission.

Bybit Fintech Ltd. is a company incorporated in the British Virgin Islands which operates a cryptocurrency platform.

On June 21, the Canadian securities regulator began proceedings against Bybit Fintech Limited for operating an unregistered crypto asset trading platform and encouraging Canadians to use the platform, and trade crypto asset products that are securities and derivatives.

Earlier this month, the regulator took similar enforcement action against another exchange, KuCoin, and also Poloniex during last month.

Both actions come after the OSC issued a notification on March 29 warning crypto-asset trading platforms that offer to trade in derivatives or securities in Ontario that they must contact OSC into compliance by April 19 or face potential regulatory action with the Ontario securities law.

Bybit Failed to Contact the OSC for Compliance

The commission alleges that Bybit failed to contact the OSC despite the public statement to begin compliance talks with regulators and has now added the platform to its investor warning list and set a hearing date of July 15.

At that hearing, the commission will consider Bybit to cease securities trading and be prohibited from acquiring securities "permanently or for such period as is specified by the Commission.”

This includes an administrative penalty of up to $1 million for breaching Ontario securities law and cover the costs of the commission’s investigation.

Alongside these enforcements, the commission has added 12 crypto trading platforms to its investor alert list since September.

The OSC took similar action in recent months against Polo Digital Assets, Ltd., operating as Poloniex, and Mek Global Limited, and PhoenixFin Pte Ltd., which are associated with KuCoin.

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