Bybit and KuCoin in Ontario: exchanges in the sights of financial police

Fine Cryptos – If there is one sector that has not experienced the crisis, it is that of regulation crypto-assets. Financial watchdogs around the world are feeling their wings right now. It must be said that between Russia, which would use cryptos to escape sanctions, the disaster LUNA which left thousands of small holders on the floor and now Celsius which blocks user withdrawals, cryptocurrency has really bad press. Fortunately, Europe is on the verge of vote the MiCA regulation (Markets in Crypto-Assets) for “protect its consumers”. At Canada, we rely on local jurisdictions to defend the interests of citizens. Direction theOntario to see how KuCoin and Bybit get away with Canadian justice.

Canadian justice is up against crypto platforms

The Ontario Securities Commission (OSC) on June 22 issued a Justice decision re KuCoin and Bybit. But before giving you the final verdictlet’s do a little background to understand the context.

On March 29, the OSC officially warned:

“(…) crypto-asset trading platforms that offer derivatives or securities trading in Ontario. (…) [Elles devaient] report to its services by the April 19 deadline or face repressive measures. »

Did KuCoin and Bybit play by the rules?

Here is a small hint given by Jeff KehoeDirector of Enforcement at the OSC, who said on June 22:

“Foreign crypto-asset exchanges that want to operate in Ontario had to abide by the rules. (…) The results announced today should serve as a clear indication. We refuse to tolerate non-compliance with Ontario securities law. »

The answer is therefore no. The 2 platforms did not answer to the requirements of Ontario justice. They allowed the “Ontario investors from trading in securities without a prospectus or exemption from prospectus requirements”. They now have to bear the consequences. That said, Bybit is doing a bit better than KuCoin.

The crypto platforms ByBit and kucoin have just been sentenced in Canada to hundreds of thousands of dollars in fines for non-compliance with securities law. Regulation is in good shape in North America!
Canadian regulator hits hard on outlaw exchanges

ByBit and KuCoin under the wrath of Ontario

Indeed, the OSC and Bybit Fintech have agreed on a “settlement agreement”. The OSC considered that the exchange had “maintained an open dialogue, provided requested information and was committed to considering registration discussions”.

The Virgin Islands company must therefore return $1,909,603 to the taxpayer and add approximately $8,000 court costs. It must also commit to several points subject to a control strict authorities:

  • Do not accept new accounts for residents of Ontario;
  • Do not offer any new products to existing accounts;
  • Do not organize any marketing or promotional operation in the State;
  • Take the steps to be officially registered.

On his side, KuCoin had less success with Ontario justice. The Court sentences him to a “permanent ban from participating in Ontario markets”. He must also pay a fine of $1,621,597 (court fees included).

The OSC advises that it:

“(…) will continue to take action against non-compliant crypto asset trading platforms. (…) [Elle ajoute être] liaising with international securities regulators to exchange information to support enforcement action. (…) [Elle] thanks the British Virgin Islands Financial Services Commission for its assistance in the Bybit case and the Seychelles Financial Services Authority for its assistance in the KuCoin case. »

Regulation from around the world, unite to protect poor consumers from lawless crypto platforms! Fortunately, in Francewe are protected by the Autorité des marchés financiers (MFA) which delivers the famous status PSAN (Digital Asset Service Provider). Besides, one of the largest exchanges in the world just discovered all the subtleties.

We want to say thanks to the writer of this short article for this outstanding web content

Bybit and KuCoin in Ontario: exchanges in the sights of financial police

Check out our social media profiles and also other related pages