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Binance to cease operations in Ontario following regulatory crackdown

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Bitcoin-exchange Binance has announced that it can no longer continue serving users from Ontario, Canada.

The company listed the region as a restricted jurisdiction, citing compliance activities. In addition to Ontario, the list also includes users from the United States.

The exchange recommended that users from Ontario close all active positions by December 31, 2021.

Ontario Securities Commission (OSC) against unregistered crypto exchanges

Ontario has become one of the most aggressive cryptocurrency regulators.

In March, the Ontario Securities Commission (OSC) announced that digital asset traders are required to register as investment dealers.

And in recent weeks, the Ontario Securities Commission has begun filing lawsuits against unregistered crypto exchanges, including Bybit, Poloniex, and Kucoin.

Thus, the Ontario Securities Commission (OSC) accused the cryptocurrency exchange Bybit of violating the securities law. In addition, the regulator wants to oblige the exchange to cover all investigation costs. Moreover, the Commission wants to oblige Bybit to return all the money that the exchange received from Canadians at the time of the violation of the Ontario Securities Act. Also, the regulator intends to collect a fine of about $ 807 thousand from Bybit.

In May, OSC filed a lawsuit against cryptocurrency exchange Poloniex. The regulator believes that the platform provided services for unregistered stock and derivatives trading.

In June, the Commission accused companies associated with the KuCoin cryptocurrency exchange of not complying with securities laws.

Thus, in all cases, the Canadian regulator made identical charges. The regulator said these exchanges did not comply with the province’s securities laws.

At the same time, the central bank of Canada didn’t see the need to issue its own digital currency (CBDC). According to the head of the Bank of Canada Timothy Lane, the regulator does not see “compelling arguments” in favor of issuing digital currency.

Binance refuses to register with the Ontario Securities Commission

Binance’s move suggests that the crypto exchange operator is unwilling to register with the Ontario Securities Commission and comply with the province’s securities laws. Likewise, late last year, crypto derivatives exchange BitMEX also blocked all users from Ontario to avoid the region’s securities laws.

Binance’s troubles with Japanese regulators

Ontario is not alone in taking a closer look at Binance’s operations within their jurisdiction.

We will remind, earlier Binance received a warning from the Japanese Financial Services Agency (FSA) for operating in the country without a license.

A Binance spokesperson said the company “currently does not conduct exchanges in Japan and does not attract Japanese users”.

A spokesperson declined to comment on whether this means Japanese users can independently visit Binance’s website and trade.

This is not the first notification of the regulator for the exchange – in 2018, the FSA warned about the need to obtain a permit.

So for now, Japanese and Canadian users of Binance are concerned about the termination of service in their countries.

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