Binance Shuts Down Its Service in Ontario

UTC by John Caroline · 2 min read
Binance Shuts Down Its Service in Ontario
Photo: Unsplash

Reports further revealed that crypto giant Binance had falsely notified investors that it was allowed to commence servicing Ontario users in December 2021.

Binance, one of the world’s leading cryptocurrency exchanges, has issued an undertaking to the Ontario Securities Commission (OSC), terminating its crypto operations with Ontario users.

Binance Signs Undertaking with Ontario Securities Commission to Cease Crypto Operations

As disclosed in a recent announcement from the official website of Ontario Securities Commission (OSC), Binance had signed an undertaking with the Ontario Securities Commission (OSC), confirming that it has officially ceased offering crypto services to users in Ontario, on the exception of certain permitted actions to protect investors.

In 2021, Binance had previously disclosed plans to withdraw its services from Ontario users, a move triggered by the regulatory backlashes faced by the exchange. According to the announcement, this was birthed by the exchange’s alleged non-compliance with OSC’s mandate for all crypto trading platforms in the region to undergo registration processes in March, 2021.

However, reports further revealed that crypto giant Binance had falsely notified investors that it was allowed to commence servicing Ontario users in December 2021. This led to the Ontario Securities Commission making confirmations that no entity in the Binance group of companies holds any form of securities registration in Ontario a few days later.

Apparently, the OSC is not pleased with the breach and has requested an undertaking which represents a legally enforceable commitment by Binance to the OSC, stipulating its right to take enforcement action against Binance for cases of further breaches of Ontario securities law that may not arise from the events described in the undertaking.

The undertaking reads:

“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. Binance undertakes to maintain these restrictions until further notice to Binance by the OSC.”

OSC further noted that it is obligated to look out for the interest of its residents against malicious and fraudulent actors saying:

“The mandate of the OSC is to provide protection to investors from unfair, improper or fraudulent practices, to foster fair, efficient and competitive capital markets and confidence in the capital markets, to foster capital formation, and to contribute to the stability of the financial system and the reduction of systemic risk.”

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Blockchain News, Cryptocurrency News, News
John Caroline
Author John Caroline

Caroline is a zealous writer who recently picked interest in Bitcoin and the cryptocurrency community. She's always learning about the industry and aims to provide timely and accurate information about the latest developments in the crypto space

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