The Ontario Securities Commission (OSC) asserted that Binance had withdrawn its commitment to comply with previously agreed requirements.
According to the exchange, there will be no new transactions with Ontario residents after December 31. Nevertheless, Binance informed its Ontario users that they no longer need to close their accounts by year’s end.
Binance, a cryptocurrency exchange, has run into trouble with the Ontario Securities Commission (OSC). In June, the company informed its users that Ontario was becoming a restricted jurisdiction and that users may have to close their accounts.
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On Wednesday, a letter from the crypto exchange was sent to its users stating: In response to ongoing and positive cooperation with Canadian regulators, Ontario users do not have to close their accounts by December 31, 2021.
In addition, the exchange informed users that it had taken its first steps on the regulatory path by registering with FINTRAC as a money services business in Canada. Our registration allows us to continue operating in Canada and to resume business in Ontario while we pursue full registration.”
However, the Ontario Securities Commission published a notice Thursday “informing investors that Binance is not registered under Ontario securities laws.”
As per the regulator, “Binance informed OSC Staff that no new transactions involving residents of Ontario would take place after December 31, 2021,” adding: “The OSC was not notified that Binance rescinded this commitment. This is unacceptable.”
The Canadian regulator said there is no securities registration for any entity in the Binance group in Ontario, which means it is not authorized to offer derivatives or securities to persons or companies in the province.
“Unregistered platforms operating in Ontario may be subject to action, including temporary orders, to ensure compliance, which can affect their ongoing local business operations.” Further, six crypto-asset trading platforms are currently registered in Ontario.
Binance has also run into trouble with regulators in a number of other countries, including the USA, the U.K., South Africa, Australia, Norway, Netherlands, Hong Kong, Germany, Italy, India, Malaysia, Singapore, Turkey, and Lithuania. At the moment, Binance is focusing on compliance. This week, the Central Bank of Bahrain approved Binance’s application to operate as a cryptocurrency service provider.
