Binance is accused of breaking its previous commitments to adhere to requirements by the Ontario Securities Commission. According to the crypto exchange, there will be no more transactions that involve Ontario residents following Dec. 31, 2018. Binance informed Ontario residents that their accounts are no longer required to be closed by the end of the year.
OSC Says Binance’s Action Is ‘Unacceptable’
The Ontario Securities Commission (OSC), got in trouble Thursday with cryptocurrency exchange Binance. Binance informed its users that Ontario had become a restricted jurisdiction in June and they may have to close their accounts. The crypto exchange wrote to users on Wednesday, stating that:
Ontario residents are not required to close accounts after December 31, 2021 due to the ongoing, positive cooperation with Canadian regulators.
The exchange also informed its users: “Binance in Canada has been successful in taking its first steps on the regulatory path by registering in Canada as a money services business with FINTRAC. This registration allows us to continue our operations in Canada and resume business in Ontario while we pursue full registration.”
However, the Ontario Securities Commission issued a notice Thursday “notifying investors that Binance is not registered under securities law in Ontario.”
The regulator wrote, “Binance represented to OSC Staff that no new transactions involving Ontario residents would occur after December 31, 2021,” elaborating:
Binance sent a notice to all users to revoke this commitment without notifying the OSC. This is not acceptable.
“No entity in the Binance group of companies holds any form of securities registration in Ontario,” the Canadian regulator stressed. “This means they are not authorized to offer trading in derivatives or securities to persons or companies located in the province.”
The OSC clarified: “Unregistered platforms operating in Ontario may be subject to action, including temporary orders, to ensure compliance which could affect their ongoing local business operations.”
Further, the regulator noted that six cryptocurrency-asset trading platforms are registered in Ontario.
Binance also got into trouble in Canada with several regulators.
According to the exchange, compliance is its current focus. Binance has received approval in-principle from the Central Bank of Bahrain for the operation of a cryptocurrency service provider within the country.
What do you think about Binance’s situation with the OSC in Canada? Comment below.
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