Canadian supervisory authority insists that Binance is not authorized, calls the letter from the crypto exchange to the users unacceptable regulation
Canadian supervisory authority insists that Binance is not authorized, calls the letter from the crypto exchange to the users unacceptable regulation
The Ontario Securities Commission (OSC) claims that Binance has revoked its obligation to comply with previously agreed requirements. The regulatory authority informed the crypto exchange that there would be no new transactions with inhabitants of Ontario after December 31. However, Binance recently informed its users in Ontario that they no longer have to close their accounts until the end of the year.
OSC says that Binance's action is "unacceptable"
The cryptocurrency exchange Binance came into trouble on Thursday with the Ontario Securities Commission (OSC). Binance notified its users in June that Ontario became a limited jurisdiction and that users may have to close their accounts. However, the crypto tour sent a letter to its users on Wednesday, in which it is said:
Due to the ongoing and positive cooperation with the Canadian supervisory authorities, there is no need for users in Ontario to close their accounts by December 31, 2021.
The stock exchange also informed its users: "With registration in Canada as a cash service company at Fintrac, the first steps on the regulatory path have been successful. This registration enables us to continue our business in Canada and to record the business in Ontario while we are pursuing the full registration."
The Ontario Securities Commission, however, published a message on Thursday "in which she informs investors that Binance is not registered in Ontario according to securities laws".
The supervisory authority wrote: "Binance informed the OSC staff that no new transactions with inhabitants of Ontario would take place after December 31, 2021," and explained:
Binance made the users a message without notification of the OSC to remove this obligation. That is unacceptable.
"No company in the Binance group of companies has any form of securities registration in Ontario," emphasized the Canadian regulatory authority. "This means that you are not justified to offer the trade in the province of people or companies."
The OSC made it clear: "For unregistered platforms that are operated in Ontario, measures, including temporary orders, can be taken to ensure compliance that could affect their ongoing local business."
The regulatory authority also found that six trading platforms are currently registered for crypto-assets in Ontario.
In addition to Canada, Binance has come into difficulty with a number of supervisory authorities in other legal systems, including the USA, Great Britain, South Africa, Australia, Norway, the Netherlands, Hong Kong, Germany, Italy, India, Malaysia, Singapore, Turkey and Lithuania.
The stock exchange is currently focusing on compliance. This week Binance received the principle from the central bank of Bahrain to a cryptocurrency service provider in the country operate.
What do you think about the situation of Binance with the OSC in Canada? Let us know in the comment area below.
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