Bybit, KuCoin Came Under Heavy Sanctions by Canadian Authorities

Two popular cryptocurrency exchanges, Bybit and KuCoin, have come under severe sanctions by a Security Commission in Canada.

On June 22, Ontario Securities Commission (OSC) announced successful enforcement actions against Bybit and KuCoin as they represent non-compliant crypto-asset trading platforms to Canadian investors.

The OSC and Bybit Fintech Limited (Bybit) reached a settlement agreement since it maintained an open dialogue, provided requested information, and engaged in registration discussions. As part of the agreement, Bybit paid $2,468,910 and another Can$10,000 toward the OSC investigation cost. Bybit also gave an undertaking that holds them accountable for bringing its operations under compliance.

KuCoin, however, could not reach a settlement agreement with the OSC. The Capital Markets Tribunal fined Can$2,000,000 and another Can$96,550.35 for the OSC investigation costs. Alongside the substantial monetary sanction is a permanent market participation ban.

Jeff Kehoe, Director of Enforcement at the OSC, said:

Foreign crypto-asset trading platforms that want to operate in Ontario must play by the rules or face enforcement action. The outcomes announced today should serve as a clear indication that we refuse to tolerate non-compliance with Ontario securities law.

At the moment, Bybit no longer accepts new registration from Ontario residents. For existing retail investors, Bybit requires investors to wind down their positions in certain restricted products, such as contracts that involve leverage, margin, or the extension of credit. Investors may use their left funds for non-restricted products or withdraw from the platform.