Breaking: Binance Commits To Ontario Shutdown, Will Block New Accounts

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Binance, the world’s largest crypto exchange, said it will stop opening new accounts in Ontario, as part of a commitment to the Ontario Securities Commission (OSC) to cease operations in Canada’s most populous province.

The exchange released an undertaking on Tuesday outlining the steps it will take to wind down its Ontario operations, which include providing withdrawal waivers and fee rebates to existing users in the province.

Binance has a troubled history in Ontario

Today’s undertaking marks nearly a year of clashes between Binance and the OSC. The exchange had decided to cease operations in Ontario in June 2021, after the OSC alleged it had failed to meet certain regulatory requirements.

But in today’s undertaking, Binance admits it had still allowed users in Ontario to trade on its platform. It had even incorrectly informed users that it had the necessary approvals to operate in the province.

The exchange said it had begun blocking Ontario users since early-January, but said that investors were still using its platform.

But today’s undertaking marks a departure from the company’s previous rhetoric with the OSC. Specifically, Binance said the OSC can now pursue legal action against the firm for failure to comply with the ban.

This undertaking represents a legally enforceable commitment by Binance to the OSC. The OSC reserves the right to take enforcement action against Binance for any past, present or future breaches of Ontario securities law not arising from the events described in the undertaking.

The OSC said in a separate statement.

Only 6 crypto exchanges approved so far by the OSC

So far, Ontario’s security regulator has approved only six crypto exchanges to operate in the province, with all of them being local operators. Canada does not have a national securities regulator, with each province managing its own capital markets. The OSC is the country’s largest, and also regulates the benchmark Toronto Stock Exchange.

Binance is still allowed to operate in Canada’s other provinces.

With more than five years of experience covering global financial markets, Ambar intends to leverage this knowledge towards the rapidly expanding world of crypto and DeFi. His interest lies chiefly in finding how geopolitical developments can impact crypto markets, and what that could mean for your bitcoin holdings. When he isn't trawling through the web for the latest breaking news, you can find him playing videogames or watching Seinfeld reruns. You can reach him at [email protected]
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.

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