Bybit announced that it reached a settlement agreement with the Ontario Securities Commission (OSC) on Thursday, a day after the OSC released a Statement of Allegations against the cryptocurrency investment trading platform.
The agreement includes a few measures to be taken by Bybit as it engages in registration talks with the Canadian regulating authority. This notice comes after the OSC announced financial penalties against Bybit and KuCoin, claiming violation of securities laws and operating unregistered crypto- investment trading platforms.
As reported by the Settlement Agreement, Bybit has disgorged revenues totaling approximately $2.47 Million and compensated the OSC $7,707 (CAD 10,000) for costs. No additional monetary penalties were levied on Bybit as part of the agreement.
Likewise, Bybit announced that it would not accept new accounts from Ontario residents, provide any new goods to existing accounts held by Ontario investors, or conduct marketing and promotional efforts targeted at Ontario residents.
Registration discussions with the provincial regulating authority are at present underway, and if the process fails, Bybit will cease operations in Ontario. Investors who already own digital currencies on Bybit will be required to terminate their positions in specific restricted products such as leveraged contracts, margin trading, or credit extension. Retail investor funds or assets in Ontario that are unspent or unutilized may be used for unrestricted products or withdrawn from the Bybit platform, the exchange noted.
Ben Zhou, co-founder and ceo of Bybit in a statement noted that:
“We appreciate the OSC’s efforts in protecting Ontario investors and look forward to cooperating with the OSC in all respects in the registration process.”
Cointelegraph reached out to Bybit for additional comments but did not receive a response by press time. This story will be updated as more information becomes available.
The decision by the regulating authority was the latest in a string of warnings and legal actions taken against cryptocurrency exchanges that provide services to Ontario consumers. In March 2021, the OSC announced a deadline for cryptocurrency corporations operating in Ontario to register with the province’s securities laws by April. Ontario has eight registered digital currency trading platforms, including fidelity Digital Assets, Bitvo, and Bitbuy, as of June 1.
Disclaimer: This page is simply meant to provide information. It does not constitute a direct offer to purchase or sell, a solicitation of an offer to buy or sell, or a suggestion or endorsement of any goods, services, or businesses. Lolacoin.org does not offer accounting, tax, or legal advice. When using or relying on any of the products, services, or content described in this article, neither the firm nor the author is liable, directly or indirectly, for any harm or loss that may result. Read more at Important Disclaimers and at Risk Disclaimers.