The Ontario Securities Commission (OSC) has filed charges against cryptocurrency exchange ByBit over violating securities law. The watchdog claims the exchange is subject to Ontario securities law as cryptocurrency products offered on it are securities and derivatives. However, ByBit failed to comply with the registration and prospectus requirements under Ontario securities law, the OSC added.
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The OSC notified ByBit over violating regulatory rules on March 29. Nonetheless, ByBit did not contact the OSC. As a result, the watchdog wants ByBit to pay a penalty of not more than $1 million for each failure to comply with securities law. The OSC also wants the exchange to pay the costs of the investigation.
This is OSC's third legal action against cryptocurrency exchange, after the regulator accused Poloniex and KuCoin of the same violations. As iHodl earlier reported, the Canadian financial regulator filed lawsuits against KuCoin and Poloniex after the exchanges failed to comply with Ontario securities law.
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