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Bybit operating unregistered crypto platform – Canadian regulators

England

TL;DR Breakdown

  • OSC takes crypto crackdown to Bybit
  • Regulators allege crypto firm is illegal
  • KuCoin takes fall ahead of ByBit

The Ontario Securities Commission (OSC) has alleged that popular crypto firm Bybit operates an unregistered crypto asset trading platform in the country.

Despite being one of the top crypto exchange firms in the world, the exchange firm is not having it easy with regulators in Canada alongside a host of other crypto exchange firms.

The Ontario Securities Commission (OSC) charged the exchange firm with operating an unregistered crypto asset trading platform, encouraging Ontarians to use the platform, and allowing Ontario residents to trade crypto asset products that are securities and derivatives.”

The regulators noted that they requested Bybit on March 29 to comply with Ontario security laws but did not respond to the regulators. OSC added Bybit to its investor warning list and set a hearing date of July 15.

During the hearing, the commission will review comments of its operatives who demand that the exchange cease securities trading and be prohibited from acquiring securities “permanently or for a period of time.

They also recommended that the exchange firm pays an administrative penalty of up to $1 million for each breach of Ontario securities law.

KuCoin takes the fall in Canada before Bybit

Before the crackdown on Bybit, OSC has marked KuCoin and other exchanges for crackdown for similar offense of not registering, thereby operating an illegal exchange platform in the country.

OSC filed a statement of Allegations that KuCoin firms Mek Global Limited and PhoenixFin Pte. Ltd. have failed to comply with Ontario securities law.

Similar to what Bybit was alleged of the regulator said KuCoin is operating an unregistered crypto asset trading platform and encouraging Canadian customers to trade crypto asset products that are securities and derivatives on the platform.

The OSC said it had warned all crypto-asset trading platforms offering to trade in derivatives or securities in Ontario that they must contact its staff or face potential regulatory action.

Exchanges in Canada trading platforms were given until April 19 to bring their operations as a dealer or marketplace into compliance, but they failed to.

Muhaimin Olowoporoku

Muhaimin Olowoporoku

Muhaimin loves writing on crypto news aside from being a crypto enthusiast. He has a knack for analysing issues and updating people on what's happening around the globe. He believes that blockchain and cryptocurrency are the most useful systems of mutual trust ever devised.

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