Bybit Fintech, the second-largest futures trading platform by open interest, was accused of operating an unregistered cryptocurrency trading platform in Ontario, according to a Statement of Allegations published by the Canadian province's Ontario Securities Commission.
- The regulator said Bybit is operating an unregistered crypto asset trading platform and encouraging Canadian customers to trade crypto asset products that are securities and derivatives on the platform.
- The action against Bybit follows a similar one the OSC took against KuCoin trading platforms earlier this month.
- Both actions come after the OSC issued a press release on March 29 notifying crypto asset trading platforms operating in the Canadian province that they need to bring their operations into compliance with Ontario securities law by April 19 or face potential regulatory action.
- The OSC said Bybit has yet to contact the commission to begin compliance talks.
- Potential penalties include payment of not more than $1 million in penalties for each failure to comply with Ontario securities law.
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.