Bybit Allegedly Violates Ontario Securities Laws

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In Brief
  • The Canadian financial regulator has alleged that Bybit has violated securities laws.

  • The OSC states that the exchange has disregarded Ontario securities laws.

  • The agency has been targeting exchanges and other crypto companies for potential securities law violations.

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The Ontario Securities Commission (OSC) has alleged that Bybit has violated securities laws, adding to the list of crypto exchanges that it’s investigating.

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The Ontario Securities Commission (OSC) has formally accused Bybit of violating securities laws, making it the latest entity that has become the target of the regulatory body. The authority published an official statement on June 21, alleging that the exchange has disregarded Ontario securities laws. Additionally, as it has said before, it intends to warn crypto trading platforms that flouting securities laws will result in regulatory action.

Bybit under fire

The statement of allegations is similar to what the OSC has levied against. It states that Bybit has breached laws for failing to register with it. The crypto exchange is available to Ontario residents, who have opened accounts, and calls the assets offered securities and derivatives. The failure to register with the body and the offering of the products amounts to a securities violation.

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The OSC sent a notice to crypto exchanges on March 29, asking them to initiate contact by April 19 to begin compliance decisions. Several exchanges have reportedly failed to do so. The fact that the authority has been sending out these notices in rapid succession indicates that they intend to make good on their promise of taking action against exchanges that flout regional laws.

The OSC has been targeting exchanges and other crypto companies for potential securities law violations, with KuCoin being another notable target. This comes as governments and financial regulators around the world increase their scrutiny of the crypto market, which has taken center stage following the year’s bull run.

OSC and others not messing around

The OSC has upped its regulatory game this year, as the market has hit new peaks and experienced massive corrections. The greater number of retail investors and growth of the market, in general, has forced regulators like the OSC to divert their resources towards the crypto market.

In the United States, Ripple remains the most high-profile project suffering from a lawsuit. The U.S. Securities and Exchange Commission (SEC) is currently in the middle of a lawsuit with the company, alleging the same securities laws violation. Ripple, on its part, has firmly denied any wrongdoing.

The crackdown on exchanges now appears to be occurring on a global scale. The country of Malta, which is known as “Blockchain Island” for its crypto-friendly framework, has reportedly been criticized by the Financial Action Task Force (FATF) for its lax oversight on crypto transactions. Malta is home to some of the biggest exchanges on the market, including Binance and OKex, which are headquartered there.

Some exchanges have made it a point to accelerate the meeting of compliance standards. Kraken, which is expected to go public next year, has tightened its KYC rules in the U.S.

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Rahul is an India-based Digital Marketer who became attracted to Bitcoin and blockchain technology in 2014. Ever since, he's been an active member of the community. Other than that, he is a die-hard gamer. This gadget freak is well renowned in his circle for binge-watching Game of Thrones.

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