Another regulatory snafu for Binance, as Canadian authorities claim the world's largest cryptocurrency exchange has failed to follow previous instructions and legal orders. According to Ontario market regulators, the platform has continued to serve investors in the province despite publicly announcing the withdrawal of the same offerings.
Binance is still fighting regulatory battles
According to a statement issued by the Ontario Securities Commission (OSC), the province's top financial watchdog, on Thursday (March 17, 2022), Binance is not a regulated entity and is not licensed to operate within its jurisdiction. According to the statement, Binance has also failed to comply with a cease and desist order issued in 2021.
Following discussions between the OSC and Changpeng Zhao's platform about regulatory compliance, the crypto company informed users that it would cease all services and offerings in Ontario.
The OSC claims, however, that Binance continued to operate within the province and informed investors that access to the exchange would remain open. Binance allegedly made the announcement to its Ontario users on December 29, 2021.
The OSC issued a public statement the next day, on the 30th, warning that Binance Holdings Limited, Binance Canada Capital Markets Inc, and any member of the Binance group of companies do not have any regulatory approval to offer financial products related to cryptocurrencies and digital assets.
The OSC's statement includes information about an undertaking signed by Binance regarding its actions. The following is an excerpt from the statement:
“In the undertaking, Binance confirms that activities involving Ontario residents have ceased, apart from certain permitted actions to protect investors. Additionally, Binance commits that it will continue to prevent any activities involving Ontario residents, apart from these permitted actions, and to provide fee waivers and offer fee reimbursements to certain Ontario users.”
The OSC emphasized that cryptocurrency companies wishing to operate within its jurisdiction must follow the established policies and rules.
It's Time to Apply
Exchanges and other providers of digital assets have been encouraged to apply for a license and follow the proper procedures. The OSC currently maintains that six cryptocurrency trading firms are fully regulated for operations in the province. These businesses can be found on the agency's official website.
Furthermore, Ontario's top financial watchdog has warned Binance to stop engaging in illegal behavior or face severe legal consequences, including a complete ban. According to regulatory officials:
“This undertaking represents a legally enforceable commitment by Binance to the OSC. The OSC reserves the right to take enforcement action against Binance for any past, present, or future breaches of Ontario securities law not arising from the events described in the undertaking.”
The OSC's statement is the latest in a string of regulatory concerns about Binance's operations in a variety of jurisdictions. CZ's crypto exchange has also faced compliance issues in countries such as the United Kingdom, Japan, and Malta.
DISCLAIMER
The author's or anyone else's views or opinions expressed in this article are for informational purposes only and do not constitute financial, investment, or other advice. Investing in or trading in crypto assets carries a financial risk.
IMAGE CREDIT
Featured image via Binance
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