Binance pulls out of Ontario following action against other crypto exchanges

On the Web

30 June, 2021

Binance is no longer open for business in Canada’s most populous province, apparently choosing to close shop rather than meet the fate of other cryptocurrency exchanges that have had actions filed against them for allegedly failing to comply with Ontario securities laws, according to Yahoo!Finance.

  • On Friday, Binance updated its terms of use as follows:
  • Binance’s withdrawal follows publication of a Statement of Allegations last week against Bybit by the Ontario Securities Commission (OSC), which accused that crypto exchange of failing to comply with province regulations.
  • In the preceding 30 days, OSC had issued statements of allegations against two other crypto exchanges, Poloniex and KuCoin, claiming they, too, failed to comply with Ontario’s regulations.
  • On March 29, the OSC warned crypto-asset trading platforms that to operate in the province they must contact OSC staff or face potential regulatory action. Platforms were given until April 19 to discuss how to bring their operations into compliance.
  • It wasn’t clear whether Binance had reached out to the OSC. A company representative said Binance doesn’t comment on specific matters regarding regulators.
  • “We take our legal obligations very seriously and engage with regulators and law enforcement in a collaborative fashion,” he said.
  • The company has advised Ontario-based users to close out all active positions and gave them until the end of the year to withdraw their funds, according to the representative.
  • Regardless of the exact circumstances, the world where Binance is welcome to do business has grown a little smaller of late. On Saturday, a U.K. financial watchdog issued a warning that Binance isn’t authorized to operate there; on Friday, Japan’s securities regulator issued a similar statement.
  • In a press release, Binance explains the move is part of its continuing compliance efforts. “Binance has updated its Terms of Use to provide that Ontario (Canada) has become a restricted jurisdiction, effective 2021-06-26 at 3:59:59 AM (UTC),” the exchange said, adding:

    Regrettably, Binance can no longer continue to service Ontario-based users… We apologize for any inconvenience caused.

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