Bybit exchange has entered a settlement with the Ontario Securities Commission (OSC) about allegations of violating securities regulatory laws. The arrangement encompasses several conditions expected to be fulfilled as Bybit continues registration talks with the market watchdog.
The crypto futures platform has surrendered earnings amounting to about $2.47 million. The platform also returned $7,707 (CAD 10,000) to the OSC as compensation for payment for its investigation.
With registration conversation still in progress, Bybit, per the terms of the agreement will not open new accounts for Ontario residents.
It will also not deliver fresh services to old investors as well and will not run promotional campaigns for Ontario dwellers. Should the registration procedure not fall through, Bybit will shut down its Ontario operations.
In the event that Bybit exits Ontario, old investors will exit their position in certain specified products. These products include leveraged contracts, margin trading, or credit extension. Ontario professional investors can withdraw their unused funds or use it for uncategorized services.
In the latest of its warning and legal action against crypto exchanges offering services in Ontario, the provincial regulator on Wednesday also handed out financial sanctions to KuCoin, showcasing it is very serious with its fight against unwholesome trading activities.
Bybit Regulatory Issues
In March 2021, the local regulator declared a deadline for crypto firms running in the space. It was expected that in April the firms will register in obedience to security laws. The cryptocurrency exchange’s refusal to comply resulted in hearings and enforcement actions that commenced earlier in the month.
Bybit has since cooperated with the OSC’s enforcement actions. It kept an open channel for communication, delivered requested documents and participated in talks regarding registration.
As per the local regulator, only eight firms were enlisted to deliver crypto trading services in Ontario early this month.
Jeff Kehoe, OSC head of enforcement asserts that crypto players planning to function in Ontario must comply or face enforcement actions. While praising the regulators for protecting Ontario residents, Bybit said it will continue cooperating with the OSC in the registration process.