The Ontario Securities Commission (OSC) is seeking to bring enforcement action against Singapore-based crypto derivatives exchange Bybit for allegedly violating the Canadian province’s securities laws, according to a statement.
Fast facts:
- “Bybit, incorporated in the British Virgin Islands, is operating an unregistered crypto asset trading platform, encouraging Ontarians to use the platform, and allowing Ontario residents to trade crypto asset products that are securities and derivatives,” the OSC’s statement said.
- In March, the OSC — the agency that oversees securities legislation in Canada’s largest province by population — issued a warning to crypto asset trading platforms offering trading in derivatives or securities to Ontario residents to comply with the province’s securities laws or face enforcement action. According to the OSC, Bybit did not contact the regulator to initiate compliance discussions by a deadline of April 19.
- Bybit is ranked as the world’s fifth largest crypto derivatives exchanges, with over US$21 billion in 24-hour trading volume, according to CoinGecko.
- The OSC’s move against Bybit is the latest in a series of enforcement actions the Canadian regulator has taken against crypto exchanges. Last month, the OSC alleged that Poloniex, a cryptocurrency exchange incorporated in the Seychelles, violated Ontario securities law by failing to register as a crypto-asset trading platform operating in the provice. Earlier this month, the OSC similarly alleged that Seychelles-incorporated Mek Global and Singapore-incorporated PhoenixFin, which collectively make up KuCoin, failed to comply with Ontario securities registration and prospectus requirements.
- The OSC says it “continues to add unregistered crypto asset trading platforms, including 12 platforms that were added recently, to its Investor Warning List.”
- A hearing on Bybit’s enforcement proceeding is scheduled for July 15.