Bybit signs settlement agreement with Ontario Board of Negotiation

Bybit signs settlement agreement with Ontario Board of Negotiation

Bybit Reaches Settlement With Ontario Securities Commission For $2.24M Revenue Release

By Shashank Bhardwaj

Image: Shutterstock

OOn Thursday, Bybit announced a settlement agreement with the Ontario Securities Commission (OSC), a regulator in the Canadian province of Ontario. The deal was completed the day after the OSC issued a statement of allegations against the crypto asset trading platform.

The OSC has issued warnings and financial penalties against crypto exchanges Bybit and KuCoin, citing violations of securities law and the operation of unregistered trading firms in the province of Ontario. Crypto trading firms operating in Ontario were required to register with the Ontario Securities Commission under the province’s securities law in April.

Pursuant to the settlement agreement, Bybit paid revenues totaling approximately $2.47 million and paid compensation of $7,707 (C$10,000) to the OSC as a cost of the investigation. KuCoin is banned from trading in the province’s capital market and must pay a fine of more than $1.6 million. No further fines were imposed on Bybit.

In addition, Bybit will cease providing the following services to residents of Ontario: opening new accounts, providing new goods to existing account holders or investors in crypto assets, or any promotional or marketing activities targeting residents of Ontario.

However, discussion about registration with the provincial regulatory body is ongoing. If the venture fails, Bybit will cease operations in Ontario. Existing Ontario investors who own crypto assets on Bybit will exit their positions in certain specific products like margin trading, leveraged contracts or credit extensions. Funds or assets of retail investors in Ontario that are unemployed or accrued may be used for products without restriction or withdrawn completely from Bybit.

Ben Zhou, co-founder and CEO of trading platform Bybit, has agreed to cooperate with the OSC to protect the safety of Ontario traders and the registration process. Zhou said, “We appreciate the OSC’s efforts to protect Ontario investors and look forward to cooperating with the OSC in all respects in the listing process.

Shashank is the founder of yMedia. He ventured into crypto in 2013 and is an ETH maximalist. Twitter: @bhardwajshash

Aurora J. William