Canadian regulator says Binance is illegal, calls the Crypto Exchange’s letter to users ‘Unacceptable’. As a result, according to the Ontario Securities Commission (OSC). Binance has breached its pledge to comply with previously agreed-upon requirement. And has withdrawn its commitment. Following the close of business on December 31, the cryptocurrency exchange notified the regulator. That no new transactions involving residents of Ontario would be permitted going forward. On the other hand, Binance has advised its Ontario users that they are no longer compelled. To terminate their accounts by December 31st.
Earlier this month, the Ontario Securities Commission (OSC) announced that it was taking action. Against the cryptocurrency exchange Binance, which was established in 2017. Binance warned its customers earlier this month that the province of Ontario was becoming a restricted jurisdiction. And that users may asked to deactivate their accounts if they continue to operate in the province. However, the cryptocurrency exchange published a letter to its users on Wednesday. In which it claimed the following:
Because of the company’s ongoing and beneficial engagement with Canadian regulators. Users in Ontario will not obliged to terminate their accounts. By December 31, 2021, as had previously announced.
Additionally, the exchange informed its users that “Binance in Canada has successfully completed. The first step on the regulatory path by registering with FINTRAC as a money services business in Canada.” Which is the first step on the regulatory path. While we pursue full registration, this registration allows us to continue operating in Canada and to resume conducting business. In Ontario while we pursue full registration.”
Ontario’s Securities Commission issued a warning
However, according to a press release, the Ontario Securities Commission issued a letter. On Thursday warning investors that Binance is not register. Under Ontario securities law.
“Binance has communicated to OSC Staff that there would be no new transactions. Involving Ontario residents after December 31, 2021,”. The regulator stated, and it went on to disclose the following details:
Following this declaration, Binance issued a notification to users, without notifying the OSC. In which it rescinded its promise to the cryptocurrency exchange. What you’re saying is entirely incorrect.
Because “no firm in the Binance group of enterprises currently owns. Any sort of securities registration in Ontario,” the Canadian securities regulator stated. They not permitted to provide trading in derivatives or securities. To people or businesses based in the province.
It is possible that unregistered platforms operating in Ontario will be subject to action. Including temporary orders, to ensure compliance, which might have an impact on their ongoing local business operations, according to the Ontario Securities Commission (OSC).
The regulator also pointed out that there are now six crypto-asset trading platforms. Registered in the province, which is a first for the country in Canadian Regulator.
In addition to Canada, Binance has encountered difficulties with regulators. In a number of other countries, including the United States, the United Kingdom, South Africa, Australia, Norway. Also, the Netherlands, Hong Kong, Germany, Italy, India, Malaysia, Singapore, the Turkish Republic of Northern Cyprus, and Lithuania. Binance is a cryptocurrency exchange that operates in the cryptocurrency market.
According to the exchange, it is currently focusing on regulatory compliance and enforcement. The Central Bank of Bahrain has granted Binance in-principle clearance to operate. As a cryptocurrency service provider in the nation. According to a report published earlier this week by the company.