The Ontario Securities Commission (OSC) has launched an investigation against Bybit, a cryptocurrency asset trading platform, for allegedly failing to comply with provincial securities regulations.
OSC has accused Bybit of operating an unregistered crypto asset trading platform, permitting and promoting residents of the province to trade crypto asset items that are securities and derivatives, according to its Statement of Allegations.
Furthermore, Bybit has not contacted the OSC to ensure that its operations comply with relevant securities standards, and has not heeded the regulator’s prior warning to crypto-asset trading platforms.
On March 29, 2021, the OSC issued a warning to platforms that offer derivatives or securities trading to residents of Ontario, one of the first of the 10 Canadian provinces to open its markets to online gambling, stating that these companies must contact the OSC or face regulatory action.
The platforms have until April 19, 2021 to meet with the OSC to discuss how they would run their business as a dealer or marketplace in accordance with regulatory obligations.
Furthermore, the OSC indicated that platforms that provide services to Ontarians are considered to be operating in the province for securities regulation purposes.
The OSC said in their statement that: “Staff will continue to take action against non-compliant crypto asset trading platforms and are in contact with international securities regulators to exchange information to support enforcement action.
“The OSC thanks the British Virgin Islands Financial Services Commission for their assistance in the Bybit matter.”
The OSC’s Investor Warning List currently includes a number of unregistered crypto asset trading platforms, including 12 that were added recently.