Binance Informs Canadian Regulator It’s Committed to Ceasing Crypto Trading Services in Ontario – Binance, a cryptocurrency exchange, has informed the Ontario Securities Commission (OSC) that it will stop establishing new accounts for residents of Ontario and wind down some services in order to comply with rules.
Binance, a cryptocurrency exchange, wrote to the Ontario Securities Commission (OSC) last Wednesday.
Binance stated in the letter that it will “cease opening new Ontario accounts,” “desist trading in existing Ontario accounts, with exceptions to protect investors,” “wind down its businesses in specific goods,” and “provide fee waivers and offer fee reimbursement to select Ontario users.”
Binance will also report to OSC personnel and hire an independent third party to ensure that its attempts to implement its obligations are effective.
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In June 2021, Binance announced that it would cease operations in Ontario. In the same month, the exchange informed Ontario users that they must terminate all active positions by December 31, 2021.
In its letter, Binance stated that on December 31st of last year:
“Binance affirmed to Staff that the trading limitations for Ontario accounts were in place and will stay in effect, including (1) no existing Ontario users trading, (2) no new Ontario users, and (3) no marketing targeted towards Ontario users.”
However, on December 29, Binance informed Ontario users that it has been granted permission to continue operating in the province. “Binance has issued a communication to users, without any notification to the OSC, rescinding this pledge,” the Canadian regulator said at the time. “This is unacceptable.” This announcement was incorrect, according to Binance.
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“Despite the representations provided to (OSC) personnel and investors, Ontario investors were able to continue to trade after the limits were supposedly in place,” Binance stated in its letter.
Furthermore, Binance said that its customer service team “tweeted false information, assuring an Ontario user that if their account was already open, they may trade as usual after January 1, 2022, which Binance now concedes was not correct.”
Binance has told the regulator that it intends to pursue a regulatory path in order to assure compliance with Ontario securities law.