According to the Ontario Securities Commission (OSC), popular cryptocurrency startup Bybit is operating an unlicensed crypto asset trading platform in the province.
Despite being one of the world’s leading crypto exchange businesses, it is having trouble with Canadian regulators, like many other crypto exchange firms.
The Ontario Securities Commission (OSC) has accused the exchange business of running an unregistered crypto asset trading platform, promoting Ontarians to use it, and permitting Ontario residents to trade crypto-asset items that are securities and derivatives.
The authorities stated that they requested Bybit to comply with Ontario security regulations on March 29 but that Bybit did not reply. As a result, Bybit has been added to the OSC’s investor warning list, with a hearing date scheduled for July 15.
During the hearing, the commission will consider the opinions of its operatives, who have demanded that the exchange stop dealing in securities and be barred from purchasing securities permanently or for a limited time.
They also suggested that the exchange business pay a $1 million administrative penalty for each violation of Ontario securities legislation.
Before Bybit, KuCoin takes the fall in Canada.
Before the Bybit raid, OSC had flagged KuCoin and other exchanges for a similar violation of not registering, resulting in the operation of an unlawful exchange platform in the nation.
The Ontario Securities Commission (OSC) has filed allegations alleging that KuCoin companies Mek Global Limited and PhoenixFin Pte. Ltd. have broken Ontario securities laws.
KuCoin is running an unregistered crypto asset trading platform and promoting Canadian users to trade crypto-asset items that are securities and derivatives on the site, according to the regulator.
The OSC said it had issued a warning to all crypto-asset trading platforms in Ontario that offered to deal in derivatives or securities to contact its staff or risk regulatory action.
Trading platforms in Canada were given until April 19 to bring their activities as a dealer or marketplace into compliance, but they did not do so.