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The Ontario Securities Commission (OSC) says Binance has rescinded its commitment to comply with previously agreed requirements. The crypto exchange told the regulator that there will be no new transactions involving residents of Ontario after December 31. However, Binance recently informed its Ontario users that they no longer have to close their accounts by the end of the year.
OSC Says Binance’s Action ‘Unacceptable’
The Binance cryptocurrency exchange had issues with the Ontario Securities Commission (OSC) on Thursday. Binance informed its users in June that Ontario was becoming a restricted jurisdiction and users may have to close their accounts. However, the crypto exchange sent a letter to its users on Wednesday stating:
Thanks to the continued and positive cooperation with Canadian regulators, users in Ontario do not need to close their accounts by December 31, 2021.
The exchange also informed its users, “Binance in Canada has successfully taken its first steps on the regulatory path by registering in Canada as a money services business with FINTRAC. This registration allows us to continue to operate in Canada and to resume operations in Ontario while continuing our full registration.
However, the Ontario Securities Commission on Thursday issued a notice “advising investors that Binance is not registered under securities law in Ontario.”
The regulator wrote: “Binance has advised OSC staff that no new transactions involving residents of Ontario will take place after December 31, 2021,” adding:
Binance sent a notice to users, without any notification to the OSC, canceling this commitment. This is unacceptable.
“No entity of the Binance group of companies holds any form of securities registration in Ontario,” said the Canadian regulator. “This means that they are not authorized to offer derivative or securities transactions to persons or companies located in the province. “
The OSC clarified, “Unregistered platforms operating in Ontario may be subject to measures, including temporary orders, to ensure compliance, which could affect their ongoing local business operations.
The regulator further noted that there are currently six crypto asset trading platforms registered in Ontario.
Besides Canada, Binance has had issues with a number of regulators in other jurisdictions including the US, UK, South Africa, Australia, Norway, Netherlands, Hong Kong, Germany, Italy, India, Malaysia, Singapore, Turkey and Lithuania.
The exchange says it is currently focusing on compliance. This week, Binance received approval in principle from the Central Bank of Bahrain 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 comments section below.
Kevin helms
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