The Ontario Securities Commission (OSC) alleges that Binance has cancelled its commitment to comply with previously agreed requirements. The cryptocurrency exchange told the regulator that there will be no new transactions involving Ontario residents after December 31. However, Binance recently notified its Ontario users that they no longer need to close their accounts before the end of the year.
OSC calls Binance’s actions “unacceptable”
Binance, the cryptocurrency exchange, was in trouble with the Ontario Securities Commission (OSC) on Thursday. Binance notified its users in June that Ontario is becoming a restricted jurisdiction and users may need to close their accounts. However, the cryptocurrency exchange sent a letter to its users on Wednesday stating:
Due to continued active cooperation with Canadian regulators, Ontario users do not need to close their accounts before December 31, 2021.
The exchange also informed its users: “Canada’s Binance has successfully taken the first step in the regulatory path by registering in Canada as a FINTRAC currency service company. This registration allows us to continue to register in Started operations in Canada and resumed operations in Ontario.”
However, the Ontario Securities Commission issued a notice on Thursday, “informing investors that Binance is not registered under the Ontario Securities Act.”
The regulator wrote, “Binance stated to OSC staff that no new transactions involving Ontario residents will occur after December 31, 2021,” and elaborated:
Binance has issued a notice to users, but has not issued any notice to OSC, canceling this commitment. This is unacceptable.
“No entity in the Binance group of companies holds any form of securities registration in Ontario,” the Canadian regulator emphasized. “This means that they have no right to provide derivatives or securities transactions to individuals or companies located in the province.”
OSC clarified: “Unregistered platforms operating in Ontario may take actions, including temporary orders, to ensure compliance, which may affect its ongoing local business operations.”
The regulator further pointed out that six crypto asset trading platforms are currently registered in Ontario.
In addition to Canada, Binance is also in trouble with many regulatory agencies in other jurisdictions such as the United States, the United Kingdom, South Africa, Australia, Norway, the Netherlands, Hong Kong, Germany, Italy, India, Malaysia, Singapore, Turkey, and Lithuania.
The exchange said it is currently focusing on compliance.Binance received in principle this week Agree with The Central Bank of Bahrain operates a cryptocurrency service provider in the country.
What do you think of Binance’s OSC in Canada? Please let us know in the comments section below.
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