OSC targets crypto trading platform Bibyt

Crypto asset trading platform Bibyt has been investigated by the Ontario Securities Commission (OSC), for allegedly failing to comply with provincial securities requirements.

In its Statement of Allegations, OSC has accused Bibyt of operating an unregistered crypto asset trading platform, allowing and encouraging residents of the province to trade crypto asset products that are securities and derivatives.

In addition, Bibyt has not contacted the OSC with regards ensuring its operations meet relevant securities standards, and has not complied with a prior warning issued by the regulator to crypto-asset trading platforms.

The regulator issued a warning to such platforms offering trading in derivatives or securities to citizens of Ontario – one of the first of the ten Canadian provinces to begin opening its markets to online gambling – on March 29 2021, stating that these firms must contact the OSC or face regulatory action.

The platforms were given until 19 April 2021 to discuss with the OSC the conduct of their operations as a dealer or marketplace into compliance with regulatory requirements. 

Furthermore, the OSC further stated that platforms offering services to Ontarians are regarded by the regulator as operating in the province for the purposes of securities regulation.

In its statement, the OSC detailed: “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.”

A number of unregistered crypto asset trading platforms, including 12 platforms that were added recently, have now been added to the OSC’s Investor Warning List.