The Ontario Securities Commission (OSC) has issued fines of more than $4.5 million against two cryptocurrency firms – Bybit Fintech and KuCoin -- for operating unregistered trading platforms in the province.
The regulator said both companies operated unregistered cryptocurrency trading platforms that enabled investors in Ontario to trade digital assets without a prospectus.
The OSC has ordered a permanent ban on KuCoin from participating in the Ontario securities market. The company is also required to pay a penalty of $2 million and an additional $96,550.35 towards the cost of the regulator’s investigation.
The panel also approved a settlement with Bybit that will see the cryptocurrency trading firm pay a $2.5 million fine, as well as $10,000 for investigation costs.
In March 2021, the OSC told cryptocurrency trading platforms to contact the regulator if they offered securities in Ontario so that they could start the registration process or face penalties.
The OSC said KuCoin and Bybit missed the deadline to register but continued operating in the province in violation of securities laws. The OSC added that only Bybit responded to the enforcement action and is taking steps to register its trading activities in Ontario.
