Canadian Securities Regulator Bans Kucoin, Reaches Settlement With Bybit

Share Article
In Brief
  • The Ontario Securities Commission has permanently banned KuCoin and reached a settlement with Bybit.

  • Bybit will have to stop accepting new accounts, not release new products, and not promote the platform.

  • Canadian authorities are taking a tough view on crypto and will not tolerate any violations.

  • promo

    Gensokishi Online – Fantasy World Economy on the Metaverse Read now!

The Trust Project is an international consortium of news organizations building standards of transparency.

The Ontario Securities Commission (OSC) has banned KuCoin exchange from operating in the region following securities violations.

It also announced that it had reached a settlement agreement with Bybit with respect to the exchange’s failure to comply with Ontario securities law.

The regulator had issued warnings to both KuCoin and Bybit last year, saying that the two platforms may have violated securities regulations. 

The commission said that the two companies had failed to register as crypto-asset trading platforms. Director of Enforcement at the OSC Jeff Kehoe 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.”

KuCoin will also have to pay an administrative penalty of $1.54 million and the costs of the investigation. The reason KuCoin has been banned is that it had not complied with the OSC’s demands.

Bybit agreed to stop accepting new accounts for Ontario residents, not release new products, or engage in marketing or promotional activities. 

KuCoin did not meet any of these demands or even respond to the OSC’s enforcement action and never “maintained an open dialogue, provided requested information, and committed to engaging in registration discussions.”

Canadian authorities standing ground

Last year, when the OSC called out KuCoin for breaking securities laws, it said that investor protection and volatility were the primary concerns. 

Binance has also been forced to cease trading in Ontario after the OSC charged it with similar violations. The exchange agreed to stop accepting new accounts and committed to stopping serving existing ones.

Canada and its stance on crypto also made headlines during the COVID-19 trucker protests earlier this year. The government used emergency powers to impose restrictions on the crypto asset class. The decision was swiftly condemned and called draconian by some.

Disclaimer

All the information contained on our website is published in good faith and for general information purposes only. Any action the reader takes upon the information found on our website is strictly at their own risk.
Share Article

Rahul's cryptocurrency journey first began in 2014. With a postgraduate degree in finance, he was among the few that first recognized the sheer untapped potential of decentralized technologies. Since then, he has guided a number of startups to navigate the complex digital marketing and media outreach landscapes. His work has even influenced distinguished cryptocurrency exchanges and DeFi platforms worth millions of dollars.

Follow Author

Make your first deposit and trade now to earn up to $3,000 in rewards!      

Join

UUEX airdrop: Sign up to get 50 USDT, you can Withdraw to Wallet

Sign up

Poloniex Space Traveller Program: Sign up to get 30 USDT.

Get now