Canadian regulator to hold hearing against Bybit for alleged violations of the Securities Act June 22, 2021

The Ontario Securities Commission published a notice announcing that it will hold a hearing against Bybit regarding the cryptocurrency exchange supposedly violating Canadian securities legislation.

In a statement from the Ontario Securities Commission (OSC) on Monday, the regulator alleged that, even though the OSC imposing the deadline, Bybit “has failed to meet the registration and prospectus requirements under Ontario securities laws.” April 19 deadline for cryptocurrency exchanges operating in the province. Therefore, the committee will hold a hearing to solve the thing on July 15 in the earliest.

“There is a process for crypto asset trading platforms in place to bring their operations into compliance with Ontario securities laws,” the OSC stated. “Institutions like Bybit bypassing this compliance process are exposing Ontario investors to unacceptable risk and creating an uneven playing field in asset trading platforms. Cryptocurrency.”

Regulators allege Bybit failed to supply the OSC using a prospectus to operate lawfully in Canada, while the exchange provided investors with tools and contracts which constitute resources and securities under Canadian securities legislation. Such trades would allegedly violate sections of the Ontario Securities Act and involve actions “contrary to the public interest”.

The hearing suggested in July would address alternatives, including suspending Bybit’s trading for a period of time and a “permanent ban on buying securities.” The OSC also suggested fining the exchange up to $ 1 million for any alleged breach of securities legislation.

Connected: Japanese watchdog cautions of cryptocurrency derivatives trade Bybit

In separate statements by the OSC last month, the commission made similar allegations against the crypto trade KuCoin and Polo Digital Assets, the parent firm of Poloniex. In both instances, the OSC asserts the exchanges failed to contact the securities commission by April 19.

The Canadian state of Ontario is now home to many crypto companies pushing new boundaries in regulations. In February, Toronto-established Purpose Investments established the first exchange-traded Bitcoin fund (ETF) in North America, with assets under management growing to over $880 million. Evolve Funds Group and Ninepoint Partners have also received regulatory approval for a crypto ETF.