The Ontario Securities Commission (OSC) today published a Statement of Allegations against Bybit Fintech Limited (Bybit) for failing to comply with Ontario securities law.
Bybit, incorporated in the British Virgin Islands, is operating an unregistered crypto asset trading platform, encouraging Ontarians to use the platform, and allowing Ontario residents to trade crypto asset products that are securities and derivatives.
On March 29, 2021, the OSC warned crypto asset trading platforms that offer trading in derivatives or securities in Ontario that they must contact OSC staff or face potential regulatory action. Platforms were given until April 19, 2021 to discuss how to bring their operations as a dealer or marketplace into compliance. Additionally, the OSC stated that platforms that allow access to Ontarians are regarded by the OSC as operating in Ontario for the purposes of securities regulation.
Despite this warning, Bybit did not contact the OSC.
Staff will continue to take action against non-compliant crypto asset trading platforms and are in contact with international securities regulators to exchange information to support enforcement action.
The OSC thanks the British Virgin Islands Financial Services Commission for their assistance in the Bybit matter.
The OSC continues to add unregistered crypto asset trading platforms, including 12 platforms that were added recently, to its Investor Warning List.