Cryptocurrency News

Canadian Securities Regulator OSC Sets Its Sights on Bybit and Other Exchanges

By June 25, 2021 No Comments

Trading crypto assets is easier than ever thanks to the services provided by crypto exchanges. The likes of Coinbase and Binance have become multi-billion dollar companies by giving users a way to easily buy and sell cryptocurrencies. 

However, cryptocurrency exchanges can often operate in a grey zone, especially platforms that serve customers from all over world – it’s hard to ensure that operations are compliant for every single country the exchange is servicing. Recently, we’ve seen an example of this problem when Canadian securities regulator OSC (Ontario Securities Commission) alleged that Bybit is conducting business in Canada without securing the proper registration.

According to the regulator, Bybit is one of the exchanges that have failed to register their trading platforms through the Ontario Securities Commission, even though they are providing services to  residents of Ontario. The regulatory agency also alleges that even though Bybit was fully aware that it was running an unregistered service, has been encouraging the country’s citizens to trade different assets that are either derivatives or securities.

The OSC’s statement also says that Bybit did not contact the agency despite the OSC publicly stating that exchanges should get in touch with the agency to ensure that they are running their operations in a compliant manner. With the new development, Bybit has now been added as one of the companies on the investor’s warning list, and a hearing date has been set, which is to take place by July 15.

The OSC has issued similar warnings to other cryptocurrency exchanges, including KuCoin and Poloniex. In all the cases, the Commission argues that the platforms are providing services related to securities, and must therefore follow the state’s securities laws. 

According to the Commission, any digital asset that a user can buy and make a profit from is regarded as a security under the state’s law.