Bybit Reaches Settlement Agreement with Ontario Securities Commission

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Bybit announced Thursday that it has reached a settlement agreement with the Ontario Securities Commission (OSC), a day after the OSC issued a statement of allegations against the crypto asset trading platform.

The agreement includes several steps for Bybit to take as it enters registration talks with the Canadian regulator. The announcement comes after the OSC issued financial sanctions against Bybit and KuCoin, alleging violations of securities laws and operating unregistered crypto-asset trading platforms.

Under the settlement agreement, Bybit returned revenues totaling approximately $2.47 million and compensated the OSC $7,707 (CAD 10,000) for costs. No additional monetary penalties were imposed on Bybit as part of the deal.

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Additionally, Bybit has announced that it will not accept new accounts from Ontario residents, provide new products to existing accounts held by Ontario investors, or conduct marketing and promotional efforts targeting residents of Ontario.

Registration discussions with the provincial regulator are currently underway and, if the process fails, Bybit will cease operations in Ontario. Investors who already own cryptocurrencies on Bybit will need to terminate their positions in specific restricted products such as leveraged contracts, margin trading or credit extension. Funds or assets of retail investors in Ontario that are unspent or unused can be used for unrestricted products or withdrawn from the Bybit platform, the exchange noted.

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Ben Zhou, co-founder and CEO of Bybit noted in a statement that:

“We appreciate the OSC’s efforts to protect Ontario investors and look forward to cooperating with the OSC in all respects during the listing process.

TSTIME contacted Bybit for additional comment but did not receive a response by press time. This story will be updated as new information becomes available.

Related: Canadian regulator takes enforcement action against Bybit and KuCoin

The regulator’s decision was the latest in a series of warnings and lawsuits filed against crypto exchanges that provide services to Ontario consumers. In March 2021, the OSC set a TSTIME for crypto businesses operating in Ontario to register with the province’s securities laws by April. Ontario has eight registered cryptocurrency trading platforms, including Fidelity Digital Assets, Bitvo and Bitbuy, as of June 1.

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