The Ontario Securities Commission (OSC) has ordered Binance to halt all services to Canadian users in Ontario after receiving another warning for being unregulated.
Cease and Desist to Binance
The largest Canadian province, Ontario, continues its ongoing dispute with the global cryptocurrency exchange Binance after the Ontario Securities Commission (OSC) sent another formal warning to halt trading.
In a statement from the OSC on March 17th, 2022, the OSC detailed:
The “[u]ndertaking 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.”
Binance Backstory in Canada
In June 2021, Binance sent a notice to all users based out of Ontario stipulating that all activity must end by December 31, 2021. This meant closing out all active positions and moving funds elsewhere. In a strange twist of events, on December 29, two days before the deadline, Binance sent another notice stating that users can in fact continue their activities on the Binance platform.
The OSC quickly released a notice saying this is factually incorrect and that Binance is not regulated to offer services in Ontario. On New Year’s Eve, Binance once again notified users that they are in fact not allowed to use any Binance services.
According to the Undertaking and Acknowledgement document sent to the OSC, Binance has committed to:
Ceasing opening new Ontario accounts
Ceasing trading in existing Ontario accounts with exceptions to protect investors, along with winding down its business in certain products
Providing fee waivers and offering fee reimbursements to certain Ontario users
Making reports to Staff of the Commission
Retaining an independent third party to ensure the effectiveness of Binance’s efforts to implement its commitments
Crypto Compliance in Canada
Binance has identified that they are looking to obtain the necessary compliance needed to be registered in Ontario. It is unclear what the roadblocks are considering Binance can operate in other parts of Canada. According to the OSC’s compliance page, only a handful of companies have been granted “exemptive relief” to offer crypto products to investors in Ontario. None on the list would qualify among the top global cryptocurrency platforms.
As Binance continues its global expansion efforts with recent licenses being approved in Bahrain and Dubai, as well as a potential buyout of a securities firm in Brazil, it will be worth watching this development.
Source : bsc.news
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