Binance in Dispute with Canadian Regulator
Ontario Securities Commission of Canada (OSC) is accusing the world’s biggest crypto exchange by volume, Binance, of going against its commitment. According to OSC, Binance committed that it wouldn’t allow any investors from Ontario to open new trades or make new transactions. Now OSC has gained knowledge that Binance has been informing its Ontario-based customers that they do not need to close their accounts with the firm prior to the end of 2021.
A dispute of serious nature has been developed between the Ontario Securities Commission of Canada (OSC) and Binance. The background of the dispute is that in June 2021, Binance told Ontario-based customers they would need to suspend their Binance accounts. Customers were advised to ensure compliance before 31st December 2021.
At that time Binance felt that the crypto policies in Ontario had become strict. So it decided to better lift Binance’s crypto trade services from the jurisdiction. The dispute at then between OSC and Binance was then settled when Binance committed to suspending its trade and advisory services in Ontario.
However, the dispute re-emerged when Binance told its Ontario-based customers that they would no longer need to close their accounts. According to OSC, Binance has sent letters to its Ontario-based customers informing them they can keep their accounts. It further said that a settlement has been arrived at between Binance and OSC.
Resultantly, the customers can open new accounts, open new trades and transact as they were doing in the past. The letter of Binance further notes that Binance has been granted approval to do crypto ‘money’ business in Ontario by FINTRAC.
Contrary to Binance’s claims, an official public notice has been circulated by OSC. In this public notice, OSC has warned Ontario residents that Binance is not a registered crypto firm under the respective laws. OSC further said that Binance had made a commitment with OSC that it will make sure that no further transactions will be carried out by Ontario residents.
In addition, the firm had promised that it will suspend business accounts of Binance held by Ontario residents by 31st December 2021. Therefore, Binance has deliberately breached its commitment with the OSC and has been misguiding the resident by false statements.
OSC further suggested in the notice that OSC’s name has been used by Binance for misguiding the investors. Without consulting with OSC Binance cannot simply use the name and tell people that a settlement had taken place, noted OSC.
The regulator further warned residents that neither Binance nor any of its entities have ever been registered in Ontario. Therefore, Binance is not a legal entity that cannot do any business nor render services of any kind in the jurisdiction.
Binance has now been officially warned by OSC to fulfill its commitment or be ready for facing the consequences.
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