Ontario Securities Commission (OSC)claims that Binance has revoked its commitment to comply with previously agreed requirements. The crypto exchange told regulators that there will be no new transactions involving Ontario residents after December 31. However, Binance recently informed Ontario users that they no longer need to close their accounts until the end of the year.
OSC Declares Binance’s Action ‘Unacceptable’
Cryptocurrency exchange Binance, had a problem with the Ontario Securities Commission (OSC) on Thursday. Binance informed its users in June that Ontario has become a restricted jurisdiction and users may be required to close their accounts. However, the crypto exchange sent a letter to its users on Wednesday stating:
“As a result of continued and positive cooperation with Canadian regulators, Ontario users do not need to close their accounts until December 31, 2021.”
The exchange also provided the following information to its users:Binance in Canadawas successful in taking its first steps on the regulatory path by registering with FINTRAC in Canada as a money services business. This registration will allow us to continue our activities in Canada and continue our business in Ontario while we maintain full registration.”
However, the Ontario Securities Commission issued a statement Thursday “notifying investors that Binance is not registered under Ontario securities law.”
The regulator noted, “Binance has notified OSC Staff that no new transactions involving Ontario residents will occur after December 31, 2021”:
“Binance has given users a notice canceling this commitment without any notice to the OSC. This is unacceptable.”
Canadian regulators stressed that “No entity in the Binance group of companies has any securities registration in Ontario.” “This means that they are not authorized to offer derivatives or securities trading to individuals or companies located in the province.”
OSC clarified the issue
“Registered platforms operating in Ontario may be subject to action, including temporary orders to ensure compliance, which may affect their ongoing local business operations.”
The regulator also stated that there are currently six crypto-asset trading platforms registered in Ontario.
Besides Canada, Binance is also having trouble with 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 stated that it is currently focusing on compatibility. This week, Binance received approval in principle from the Central Bank of Bahrain to operate a cryptocurrency service provider in the country.
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