- Both Bybit and KuCoin, were found to violate securities laws.
- Charges of USD 2,000,000 and $96.5K have also been filed against KuCoin.
KuCoin has been permanently barred from trading on the Ontario Stock Exchange (OSE) for violating securities laws. OSC announced the news in a press release issued not long ago. Two exchanges, Bybit and KuCoin, were found to violate securities laws, and the regulator took action against them.
Non-compliance Strictly Not Accepted by OSC
Bybit and the Ontario Securities Commission (OSC) agreed to a settlement agreement because the exchange had not complied with Ontario’s securities laws. Bybit had an open dialogue and reacted effectively to the enforcement proceedings. In addition, the OSC received the information it required due to the transaction.
In order to compensate for the inquiry cost, Bybit has paid a fine of USD 2,468,910 and an additional CAD 10,000. It is also illegal for the exchange to enable new accounts to be opened by residents of Ontario or to engage in any marketing or advertising. When KuCoin did not answer the OSC inquiry, it was barred from Ontario’s market participation for failing to comply with Ontario securities legislation. Unlike Bybit, KuCoin did not react.
Jeff Kehoe, Director of Enforcement at the OSC, stated:
“Foreign crypto-asset trading platforms that want to operate in Ontario must play by the rules or face enforcement action. The outcomes announced today should clearly indicate that we refuse to tolerate non-compliance with Ontario securities law.”
Additional charges of USD 2,000,000 and $96,550 for the investigation have also been filed against KuCoin. Before this, the OSC had cautioned crypto trading platforms that provide securities and derivatives trading to contact the regulator for registration. Both KuCoin and Bybit missed the initial deadline and have not been in touch with the OSC.
If crypto-asset trading platforms aren’t complying with the rules, the OSC is working with international securities regulators to exchange information about them.
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