The local news agencies from Canada have recently shared a report in regards to Ontario Securities Commission’s action against a cryptocurrency exchange. The reports suggest that the regulatory authority of Canada has issued a notice in regards to its action against the cryptocurrency exchange.
The reports reveal that the action is against the cryptocurrency exchange Bybit where the regulator will be holding a hearing against it. The Ontario Securities Commission has alleged Bybit for openly disregarding and mocking the Canadian securities law.
The notice was released by the Ontario Securities Commission (OSC) on Monday, June 21, 2021. The regulatory authorities have alleged Bybit for continuing to offer its services in the country without proper registration.
The complaint from OSC alleges Bybit for failing to adhere to the prospectus and registration process provided by the Ontario securities law. The OSC stated that it had issued a notice revealing that the deadline for cryptocurrency exchanges to undergo a proper registration process was April 19.
However, Bybit went on to dis-regarding the deadline and warning from the OSC and continued providing its services.
In the light of the above, the Ontario Securities Commission (OSC) has announced that a hearing will be held by July 15. The purpose of the hearing would be to know exactly what the reason was for Bybit not adhering to the instructions.
Bybit has to provide a valid reason for missing out on the deadline for going through the registration process. If the cryptocurrency exchange fails to do it, then it would be taken that Bybit did this deliberately.
In the complaint, the OSC has stated that in order for any cryptocurrency exchange to operate in Canada, they are required to abide by the Ontario securities law. Whether intentionally or unintentionally, by not abiding by the laws, Bybit has made an attempt of setting a wrong precedent for other exchanges.
The OSC has always ensured that any entity operating in the country fully adheres to the regulatory requirements. If an exchange or any crypto-related entity misses out on adhering to the regulations, then the OSC would take strict actions against them.
The OSC under no circumstances would show any flexibility or biasedness, leaning towards any exchange. This is the reason why, Bybit will be answerable for its actions and if it fails to provide a proper explanation around its actions, it will face legal penalties.
By showing flexibility to any exchange or exchanges, the OSC may end up putting the information and funds of investors at great risks. Therefore, the OSC will ensure that all necessary measures are taken in order to take down such bad actors.
The regulatory authorities have stated that by offering securities to customers, the exchange is also putting their interests and funds at a risk