The OSC or the Ontario Securities Commission, a regulatory body in Canada, has issued multiple financial penalties against KuCoin and Bybit.
The Commission has further claimed that the crypto coins had violated most of the securities laws and was also operating unregistered crypto asset trading platforms. In an announcement that took place on Wednesday, the regulator from Ontario stated that it had obtained several orders that banned KuCoin from ever participating in the capital markets of the province. A fine of more than $1.6 million was also levied on the exchange.
Canada Securities Commission Has Levied Penalties Against Crypto Currencies
The OSC further announced that Bybit had also disgorged around $2.4 million as a part of the settlement agreement, and had paid the regulator a sum of $7,724 which would be the cost of the investigation. Both firms then allegedly failed to comply with the securities laws of Canada, but only Bybit went on to respond to the enforcement action of the OSC, along with maintaining an open dialogue, committing to engage in registration discussions- while providing requested information.
Jeff Kehoe, the Director of Enforcement for the OSC stated that foreign crypto asset trading platforms that wanted to trade in Canada definitely had to play by the rules of Ontario- or face enforcement action. This move undertaken by the regulatory body was definitely the latest in a series of legal actions and warnings that had been taken against the crypto exchanges that were offering services to the residents of Ontario, Canada.
It is being expected that both KuCoin and Bybit did not comply with the securities regulator, which also prompted hearings and other enforcement actions that started in the June of 2021 in Canada.