Another regulatory fiasco for Binance as Canadian authorities argue that the world’s top crypto exchange has not complied with earlier directives and court orders. Market regulators in Ontario claim the platform has continued to serve investors in the province while publicly announcing a withdrawal of the same services.
According to a statement made on Thursday (March 17, 2022) by the Ontario Securities Commission (OSC), the leading financial watchdog in the province, Binance is not a regulated organisation and not permitted to operate within its jurisdiction. The letter also alleges that Binance has failed to comply to a stop and desist injunction given back in 2021.
After conversations between the OSC and Changpeng Zhao’s platform concerning regulatory compliance, the crypto business informed to customers that it intends to cease all its services and offers in Ontario.
However, the OSC alleges that Binance continued to operate inside the province and also told investors that access to the exchange would remain accessible. The notification from Binance to its Ontario users was purportedly made on December 29, 2021.
A day later on the 30th, the OSC released a public statement warning that Binance Holdings Limited, Binance Canada Capital Markets Inc, and any member of the Binance group of enterprises have any type of regulatory clearance to sell financial products connected to cryptocurrencies and digital assets.
The OSC’s announcement provides specifics about an undertaking made by Binance relative to its conduct. An portion from the statement reads:
“In the commitment, Binance affirms that operations involving Ontario citizens have halted, aside from limited permissible steps to safeguard investors. Additionally, Binance pledges that it will continue to avoid any activity involving Ontario citizens, other from specified approved acts, and to grant price exemptions and provide cost refunds to select Ontario users.”
The OSC highlighted that crypto firms interested in functioning within its jurisdiction must comply with the existing norms and procedures.
Time To Apply
Exchanges and other suppliers of digital assets have been urged to apply for a licence and adhere to due process. At the moment, the OSC claims that six cryptocurrency trading businesses are properly regulated in the province. Users may learn more about these businesses by visiting the agency’s official website.
Additionally, Ontario’s top financial regulator has warned Binance to abstain from additional illicit activity or face severe legal consequences, including a full ban. According to regulatory officials:
“This agreement is Binance’s legally enforceable commitment to the OSC. The OSC retains the right to pursue enforcement action against Binance for any violations of Ontario securities legislation committed in the past, present, or future that are unrelated to the circumstances stated in the undertaking.”
The OSC’s announcement is the most recent in a series of regulatory concerns about Binance’s activities in a variety of countries. CZ’s crypto exchange has also encountered compliance issues in jurisdictions such as the United Kingdom, Japan, and Malta.
Yesterday, at a Senate Banking Committee hearing on digital assets and crime, the US senator who has long advocated for preventing sanction evasion using cryptocurrencies proposed a bill with the backing of ten other cosponsors that she thinks would successfully accomplish her goals.
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