Bybit is currently holding listing discussions with the provincial regulator; if the process is unsuccessful, the company will stop operating in Ontario.
A day after the Ontario Securities Commission (OSC) published a Statement of Allegations against the cryptocurrency asset trading platform; Bybit said on Thursday that it has agreed a settlement deal with the OSC.
OSC’s imposition of financial penalties
The agreement specifies a number of actions that Bybit must perform as it negotiates registration with the Canadian authority. This declaration follows the OSC’s imposition of financial penalties against Bybit and KuCoin for allegedly operating unregistered crypto-asset trading platforms.
Bybit has disgorged revenues of about $2.47 million, as per the Settlement Agreement, and paid the OSC $7,707 (or 10,000 Canadian dollars) in costs reimbursement. The agreement does not include any further financial penalties against Bybit.
Additionally, Bybit stated that it will not accept new accounts from residents of Ontario; add any new products to existing accounts held by investors from Ontario; or run marketing and promotional campaigns specifically for residents of Ontario.
In the event that the registration talks with the provincial regulator fall through, Bybit will stop doing business in Ontario. Bybit investors who currently have holdings in restricted products including leveraged contracts, margin trading, or credit extensions will need to close such positions. Unused or unspent funds or assets from Ontario’s retail investors may be used for unconstrained products or removed off from the Bybit platform, according to the exchange.
The regulator’s decision was the most recent in a series of legal actions and warnings against cryptocurrency exchanges that offer services to customers in Ontario. The Ontario Securities Commission (OSC) set an April registration deadline for cryptocurrency companies doing business in Ontario. As of June 1, there are eight cryptocurrency trading platforms registered in Ontario, including Fidelity Digital Assets, Bitvo, and Bitbuy.
