Cryptocurrency exchange Binance reprimanded by Ontario for telling users it could operate in Canada
- The Ontario Securities Commission said it was ‘unacceptable’ for one of the world’s largest crypto trading platforms to issue such a statement to users
- The message rescinds a commitment to bar Canadian users from trading after December 31, saying it has successfully taken ‘first steps on the regulatory path’
“This is unacceptable,” the OSC said in a statement on its website Thursday. “Binance has issued a notice to users, without any notification to the OSC.”
In a message to users, obtained by Bloomberg News, Binance said it “has been successful in taking its first steps on the regulatory path by registering in Canada” and that registration allows the company to continue its operations in Canada.
“As a result of ongoing and positive cooperation with Canadian regulators, there is no need for Ontario users to close their accounts by December 31, 2021,” the letter states.
The OSC said Binance had committed to ensuring no new transactions would be carried out on its platform after December 31, but the correspondence to users rescinds that commitment.
“No entity in the Binance group of companies holds any form of securities registration in Ontario,” the OSC said. Six crypto trading platforms are currently registered in Ontario, after a warning in March of this year to register with the OSC.
In a response to questions, Binance said there was some miscommunication.
