The Ontario Securities Commission (OSC) has said in a press release it has reached a settlement agreement with Bybit and fined KuCoin for failing to comply with Ontario securities law.
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The financial regulator is now requiring KuCoin to pay a penalty of $1.6 million and almost $75,000 towards the costs of the investigation. Bybit has disgorged almost $2 million and paid a further $7,000 towards the cost of the OSC’s investigation as the exchange “maintained an open dialogue, provided requested information, and committed to engaging in registration discussions.”
As part of the settlement agreement, Bybit promised not to register new users from Ontario or offer any new products to existing accounts held by Ontario investors. For existing Ontario retail investors, Bybit will require to wind down their positions in certain restricted products, like leverage, margin, or the extension of credit.
In March 2022, Binance also suspended its services for Ontario accounts after the OSC warned local investors that the exchange wasn’t registered properly in Ontario to offer trading in derivatives or securities.
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