The Ontario Securities Commission (OSC) has issued a notice stating that it will be holding a hearing against Bybit regarding crypto exchange allegedly “flouting” Canadian securities law.
Bybit operates an unregistered crypto asset trading platform and encourages Canadian customers to trade crypto-asset products that are securities and derivatives on the platform.
According to OSC, Bybit had failed the deadline of April 19 to comply with the registration and prospectus requirements under Ontario securities law
“A process is in place for crypto asset trading platform to bring their operation into compliance with Ontario securities law,” Stated the OSC. “Entities such as Bybit which flout this compliance process expose Ontario investors to unacceptable risks and create an uneven playing field within the crypto asset trading platform sector.”
Also read: The People Bank Of China (PBOC) Says Banks Must Block Crypto Transactions
Potential penalties include payment of not more than $1 million in penalties for each failure to comply with Ontario securities law. Earlier this month regulator took similar enforcement action against another exchange KuCoin. As well, last month, the OSC alleged Poloniex had not followed its registration process. The Canadian province of Ontario has become home to many crypto firms pushing new boundaries in local regulation.
