Binance Shuts the Door to Ontario Users Following New Compliance Update

Binance, the world’s largest cryptocurrency exchange by trading volume has revealed it will be restricting users from the Canadian province of Ontario effective today. According to the announcement provided by the trading platform, the Ontario region has now been placed in the “restricted jurisdiction” category after updating its Terms of Use.

The issue of regulations is becoming ever more polarizing as it relates to cryptocurrencies and the exchanges providing services related to them. The nature of cryptocurrencies in which they permit an almost anonymous transaction is a feature many regulators around the world constantly speak against. A higher level of compliance is often required from entities that wish to provide services bordering on these assets. The failure to meet these requirements limits the availability of specific crypto-related services to people in some parts of the world.

Binance did not provide the details as to exactly what transpired with Ontario authorities, and neither did it affirm plans to meet up with whatever requirements necessary. Per the exchange’s update, its platform users from the newly restricted region are required to close all of their positions as soon as possible, with a predefined deadline of December 31, 2021. 

Are North American Regulators Unfriendly to Binance?

Despite the fact that Binance has a global presence, the exchange has not particularly found a soft landing amongst North American regulators since its launch back in 2018. In a bid to pacify United States market regulators, the exchange has had to back a new entity dubbed Binance.US, an outfit designed to play by the American market rules.

Much recently, Binance appointed former Comptroller of the Currency, Brain Brooks to lead the American subsidiary, a move many believe will aid the parent company’s relationship with regulators. Binance global has been questioned directly by federal regulators and while there is no evidence of wrongdoing found, market observers believe the exchange is not off the hook yet. 

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Binance has bad blood with regulators because there are claims made by Forbes analysts the exchange maintains no headquarters in order to avoid paying taxes, a claim Chief Executive Officer, Changpeng Zhao (CZ) has often rebuffed. With Ontario joining the US as a restricted area on Binance Global, the fears surrounding Binance’s availability in North America just received a new boost.