Bybit announced that it reached a settlement with the Ontario Securities Commission (OSC) on Thursday, a day after the OSC published a statement of objections against the cryptocurrency trading platform.
The deal includes several steps that Bybit will need to take as it enters registration talks with the Canadian regulator. This announcement comes after the OSC issued economic sanctions against Bybit and KuCoin, alleging the violation of securities laws and the operation of unregistered crypto asset trading platforms.
Under the settlement agreement, Bybit has returned proceeds totaling approximately $2.47 million and has compensated the OSC $7,707 (CAD 10,000) in costs. No additional monetary penalties were imposed on Bybit as part of the settlement.
Also, Bybit announced that it would not accept new accounts from Ontario residents, provide new products to existing Ontario investor accounts, or engage in marketing and promotional efforts directed at Ontario residents.
Registration talks are currently underway with the provincial regulator, and if the process fails, Bybit will cease operations in Ontario. Investors who already hold cryptocurrencies on Bybit will be required to end their positions in specific restricted products, such as leveraged contracts, margin trading, or credit extension. Unspent or unused funds or assets of retail investors in Ontario may be used for unrestricted products or withdrawn from the Bybit platform, the exchange noted.
Ben Zhou, co-founder and CEO of Bybit, noted in a statement that:
“We appreciate OSC’s efforts to protect Ontario investors and look forward to cooperating with OSC in all aspects of the registration process.”
Cointelegraph reached out to Bybit for additional comment but did not receive a response as of press time. This article will be updated as more information becomes available.
The regulator’s decision was the latest in a series of warnings and legal action taken against crypto exchanges serving Ontario consumers. In March 2021, the OSC issued a deadline for crypto businesses operating in Ontario to register with the province’s securities laws by April. Ontario has eight registered cryptocurrency trading platforms, including Fidelity Digital Assets, Bitvo and Bitbuy, as of June 1.
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