Canadian Regulator Insists Binance Is Unauthorized, Calls the Crypto Change’s Letter to Customers ‘Unacceptable’ – Regulation Bitcoin Information


The Ontario Securities Commission (OSC) claims Binance has withdrawn its obligation to comply with previously agreed requirements. The crypto exchange notified the regulator that there would be no new transactions with Ontario residents after December 31st. However, Binance recently told its users in Ontario that they no longer need to close their accounts until the end of the year.

OSC says Binance’s action is “unacceptable”

The Binance cryptocurrency exchange got into trouble with the Ontario Securities Commission (OSC) on Thursday. Binance notified its users in June that Ontario was becoming a restricted jurisdiction and users may need to close their accounts. However, the crypto exchange sent a letter to its users on Wednesday stating:

Due to ongoing and positive collaboration with Canadian regulators, there is no need for Ontario users to close their accounts until December 31, 2021.

The exchange also informed its users: “By registering in Canada as a cash services company with FINTRAC, Binance in Canada has successfully taken the first steps on the regulatory path. This registration will enable us to continue doing business in Canada and to resume business in Ontario while we pursue the full registration. “

However, the Ontario Securities Commission issued a notice on Thursday “informing investors that Binance is not registered under securities laws in Ontario.”

The regulator wrote, “Binance has advised OSC staff that there will be no new transactions with residents of Ontario after December 31, 2021,” and stated:

Binance has given users a notice without notifying the OSC to lift this obligation. This is unacceptable.

“No company in the Binance group of companies has any form of securities registration in Ontario,” said the Canadian regulator. “This means that they are not authorized to offer any provincial resident or company to trade in derivatives or securities.”

The OSC clarified: “Unregistered platforms operating in Ontario may be subject to measures, including temporary orders, to ensure compliance with regulations that could affect their ongoing local business operations.”

The regulator also noted that there are currently six crypto asset trading platforms registered in Ontario.

In addition to Canada, Binance has gotten into trouble with a number of regulators in other jurisdictions, including the US, UK, South Africa, Australia, Norway, the Netherlands, Hong Kong, Germany, Italy, India, Malaysia, Singapore, Turkey, and Lithuania.

The exchange is currently focusing on compliance. This week, Binance received general approval from the Bahrain Central Bank to operate a cryptocurrency service provider in the country.

What do you think of Binance’s situation with the OSC in Canada? Let us know in the comment section below.

Kevin Helms

Kevin, a student of Austrian economics, found Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open source systems, network effects and the interface between economy and cryptography.

Photo credit: Shutterstock, Pixabay, Wiki Commons

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