Cryptocurrency exchange “Bybit”, one of the five largest cryptocurrency exchanges in the world with trading volume reach $53 billion last week.

Bybit is on the hook with Canadian regulators, along with other prominent cryptocurrency exchanges.

The Ontario Securities Commission (OSC) has accused BVI-registered Bybit of operating a cryptocurrency trading platform unregistered, encouraging Ontarians to use the platform, and allowing Ontarians to trade cryptocurrency products and derivatives that are securities.

According to the OSC, it had previously requested on March 29 that Bybit contact it about how to make the platform compliant with the Ontario Securities Act, but received no response.

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Bybit has now been added to its investor warning list and has set a date for the first session on July 15.

At the hearing, the court will consider recommendations made by OSC employees calling on Bybit to stop trading the securities and prevent it from acquiring the securities permanently or for a period specified by the commission.

OSC employees have recommended an administrative fine of up to $1 million for each breach of the Ontario Securities Act.

Earlier this month, the regulator took a similar enforcement action against another trading platform, KuCoin.

Last month, the OSC alleged that the Poloniex trading platform had not followed through on its registration process.

The argument made by the regulator is mostly the same:

The platform offers securities and derivatives to Ontarians, which means it must comply with the province’s securities laws.

Securities, in general, are financial instruments that people can buy and trade for the purpose of making a profit.

Derivatives are a type of security that obtains its value from an underlying asset that may or may not be a security in itself.

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For example, commodity futures and bitcoin futures are derivatives.

These derivatives allow someone to set the purchase/sale price of an asset in advance; It is a way to gamble on how much the price of an asset will increase or decrease.

Bybit is a major investor in BitDAO, backed by entrepreneur and serial founder of multi-company Peter Thiel.

BitDAO announced last week that it had secured $230 million to provide grants, liquidity and technical expertise to decentralized finance projects.

Bybit has promised to offer futures trading with BitDAO.

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