In both cases, the OSC alleges that both exchanges failed to comply with the rulings made by the regulator. Bybit you must pay the fine and follow certain instructions, but KuCoin is permanently prohibited from operating in Ontario.
- ByBit must pay a $1.9 million fine in order to operate in Ontario.
- KuCoin will not be able to offer services in the Canadian state.
- Critics and exchanges point out that the stance of the OSC is very restrictive.
- Canada wants to attract investors, but regulation of the OSC doesn’t seem to help.
In Canada, the Ontario Securities Commission (OSC) announced this week that cryptocurrency cryptocurrencies are digital currencies that use cryptographic technologies to secure their operation. exchange businesses that allow customers to trade cryptocurrencies for fiat money or other cryptocurrencies. KuCoin is banned from operating in that locality, while also fining the platform a place to buy, sell and store cryptocurrency Bybit 1.9 million for securities laws violations.
OSC accuses of non-compliance KuCoin y Bybit
According to a statement released by the regulator, the measure comes in place for non-compliance with the regulations implemented in March 2021, where the OSC required all exhanges offering derivatives and/or securities transactions in Ontario to contact the agency, precisely to raise compliance standards that should begin to be implemented. The report states that both KuCoin como Bybit failed to comply with this call and did not get in touch by April 19 of the same year, the deadline for complying with the request.
The demand for OSC had different readings among the exchanges indicated. On the one hand we have Bybit, which decided to accept the regulator’s request and comply with the signals. But on the other hand, there is KuCoin, which chose to ignore and refused to comply with the state agency’s demands.
In this regard, the OSC he commented:
“Unlike KuCoin, Bybit responded to the CSO’s enforcement action, maintained an open dialogue, provided the requested information, and engaged in discussions for registration.”
Measures against Bybit y KuCoin
Given that Bybit took on a much more collaborative attitude, the OSC sanctioned the exchange’s non-compliance with a fine of CAD $2.5 million (USD $1.9 million) to ensure the continuity of its operations in the state of Ontario.
In addition to the payment of the fine, Bybit you will also have to comply with the following guidelines:
- Will not allow new accounts to be opened between Ontario resident customers.
- Los inversionistas que actualmente operan desde Ontario no podrán recibir ninguna clase de producto nuevo a los ya operativos.
- The Exchange is prohibited from conducting targeted marketing and advertising campaigns for customers residing in Ontario.
However, given the restrictive nature of these measures, the team of Bybit indicated that if the outlook is not favourable, they will be forced to suspend operations in Ontario.
In the case of KuCoin, the measure is much harsher as the exchange is banned from operating within the state of Ontario, and must also pay a fine of CAD $2 million (USD $1.5 million).
Enfoque muy restrictivo en Ontario
Las medidas recientemente anunciadas refuerzan el enfoque por parte de la OSC towards cryptocurrency trading at the local level, which many analysts and crypto-enthusiasts rate as highly restrictive.
In the face of these accusations, the director of enforcement of the OSC, Jeff Hehoe, comentó:
“The results announced today should serve as a clear indication that we refuse to tolerate non-compliance with the Ontario Securities Act.”
While this stance has generated conflict among exchanges operating in Canada, this does not seem to be the position of other regulators and legislators in the country. Parliamentarians have asked the assembly to think about a more appropriate regulation for the sector, as they consider that the space has important and reputable participants, so a friendlier perspective could attract investors to the country.
Critics and analysts support the opposite of Resistance, it is a threshold that crypto’s price doesn’t fall below. the position of parliamentarians, indicating that if the country does not take advantage of this opportunity could lose billions of dollars in investment, while lagging behind other nations that have already made progress on this issue.
At the time of publishing, there are only eight companies that have registered before the OSC in the state of Ontario.
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Version by Angel Di Matteo / DiarioBitcoin
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