Bybit said today that it has reached a settlement agreement (the “Settlement Agreement”) with the Ontario Securities Commission (“OSC”) addressing the issues mentioned in the OSC’s Statement of Allegations from June 21, 2021. Bybit contemplates various actions under the Settlement Agreement and the related Undertaking while participating in registration negotiations with the OSC.
Ben Zhou, co-founder and CEO of Bybit stated:
“It has always been our primary objective to operate our business in compliance with all relevant rules and regulations in Ontario. Bybit took immediate steps to cooperate with the OSC upon being notified of the issuance of the Statement of Allegations and we have started the registration and compliance process in Ontario. We appreciate the OSC’s efforts in protecting Ontario investors and look forward to cooperating with the OSC in all respects in the registration process. As crypto adoption goes mainstream, it is crucial for us to deliver next level trading experiences to all crypto believers.”
Bybit has paid the Ontario Securities Commission $10,000 CAD for its expenses as part of the settlement agreement, discharging about $2.47 million USD from its Ontario accounts. In terms of financial penalties, Bybit was spared. According to the company, any new accounts, new products, or marketing and promotional efforts aimed toward Ontarians will not be accepted by Bybit while the registration process is underway.
The OSC released article stated:
“A panel of the Capital Markets Tribunal today approved a settlement agreement between the OSC and Bybit Fintech Limited (Bybit), incorporated in the British Virgin Islands, for failing to comply with Ontario securities law.”
Bybit’s Ontario operations will be shut down if registration negotiations fall through. As a result, Bybit’s current retail investors in Ontario will have to cut their holdings in certain prohibited items such as contracts involving leverage, margin, or credit extension. Non-restricted items may be purchased with cash or assets remaining in Ontario retail investor accounts.