Today, Bybit confirmed that the company has reached a settlement with the Ontario Securities Commission (OSC). It relates to the matters at issue that were stated in the Statement of Allegations that was issued by the OSC on June 21, 202. The Settlement Agreement and accompanying Undertaking envisage a variety of actions to be performed by Bybit while it participates in negotiations with the OSC regarding registration.
Bybit has agreed to pay the Ontario Securities Commission $10,000 CAD to cover its costs and has deposited earnings from its Ontario accounts totaling roughly $2.47 million USD as part of the Settlement Agreement. Bybit was not subjected to any additional monetary restrictions. Bybit has committed to not accepting new accounts for citizens of Ontario while registration deliberations are still in progress.
Ben Zhou, co-founder and CEO of Bybit remarked:
“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. As crypto adoption goes mainstream, it is crucial for us to deliver next-level trading experiences to all crypto believers.”
Cease Of New Services From Bybit
In addition, the company will not offer any new products to current users that are held by investors from Ontario, nor will it participate in any promotional and marketing events that are directed toward residents of Ontario. In the event that registration negotiations are unsuccessful, Bybit plans to close its services in Ontario.
Bybit will demand that existing Ontario retail investors wind down their holdings in only certain prohibited products, including contracts that entail leverage, margin, or the provision of credit. This requirement applies to investors in the province of Ontario. Any earnings or assets that are still present in accounts held by retail investors in the province of Ontario may be withdrawn from the Bybit platform or utilized to purchase non-restricted products.
String Of Warnings For Crypto Exchanges
The judgment made by the authority was the most recent in a line of warnings and legal measures that have been taken against cryptocurrency exchanges that offer their services to customers in the province of Ontario. The Ontario Securities Commission set a deadline of April 2021 for cryptocurrency businesses that operate in Ontario to register with the OSC in accordance with the securities rules of the province. The deadline was announced in March 2021. As of the first of June, there are eight licensed cryptocurrency trading platforms in Ontario. These platforms include Fidelity Digital Assets, Bitvo, Bitbuy, and others.
Ben Zhou explained that Bybit’s major mission statement has always been to run the company in a manner that is compliant with any and all rules and regulations that are applicable in the province of Ontario. He disclosed that immediately after being notified of the release of the Statement of Allegations, Bybit initiated efforts to cooperate with the OSC. Additionally, he stated that the company has begun the process of registering and complying with regulations in Ontario.
Potential Implications For Bybit & Others
KuCoin, unlike Bybit, is allegedly uncooperative with the OSC’s probe. Consequently, the Seychelles-based trading platform is no longer permitted to participate in Ontario’s financial markets. The OSC also imposed a $2 million CAD fine and roughly $100,000 CAD in investigation-related expenses on the exchange.
The sanctions came more than a year after the OSC instructed Ontario-based exchanges to contact the OSC or face infringement proceedings. As per the OSC, neither Bybit nor KuCoin registered with or approached the agency by the 19 April 2021 deadline.
