Binance cryptocurrency exchange leaves Ontario – Canada

The Binance cryptocurrency exchange is leaving Ontario Canada and will no longer offer services in the province. The decision comes amid ongoing regulatory pressure on digital asset trading platforms that has already impacted the operation of several exchanges.

Binance cryptocurrency exchange is leaving Ontario Canada

The cryptocurrency exchange operator Binance is leaving the Canadian province of Ontario amid regulatory action there.

Binance announced on Friday that all Ontario-based users must close all active positions by December 31, 2021.

Binance, one of the world’s leading daily crypto exchanges, informs customers of a change affecting crypto in Ontario. Canada’s province has limited jurisdiction, the company announced this week

In a press release, Binance stated that the move is part of an ongoing compliance effort. “Binance is updating its own Terms of Use to ensure that Ontario, Canada has become a restricted jurisdiction effective 6/26/2021 at 3:59:59 AM (UTC).”

The exchange added:

“Unfortunately, Binance is no longer able to serve users in Ontario … We apologize for the inconvenience.”

The platform advises crypto traders in Canada’s most populous region to “take immediate action to close all active positions by December 31, 2021”.

The Binance cryptocurrency exchange is leaving Ontario, Canada. The securities regulator strengthens the control of the trading platforms

In the past few weeks and months, the Ontario Securities Commission has tightened its scrutiny over the province’s digital asset trading platforms. The regulator wants them to comply with securities laws in the region that require registration, which Binance may have avoided.

Binance’s move shows that the crypto exchange operator does not want to register with the Ontario Securities Commission and comply with the provincial securities laws. In a similar move late last year, crypto derivatives exchange BitMEX also banned all Ontario-based users in an attempt to circumvent the region’s securities laws.

As for Binance, the crypto exchange operator received another warning from Japan’s Financial Services Agency this week. The regulator said Binance was still operating in the country without registration. A Binance spokesman told The Block that the company “does not currently host any exchanges in Japan or actively involve Japanese users.”

The Ontario Securities Commission has begun legal action against unregistered cryptocurrency exchanges, including Bybit, Poloniex, and Kucoin, in the past few weeks. The regulator has alleged that these exchanges do not comply with the provincial securities laws.

In March, the OSC asked crypto exchanges to contact their staff by April 19 to discuss regulatory compliance or bring lawsuits. The Commission believes that cryptocurrency platforms provide access to securities regulation for Ontario residents as local operators.

This week, the OSC claims that the BVI has signed Bybit to offer Ontarians trading in securities and derivatives in the form of crypto-asset products. Earlier this month, the regulator announced that two trading platforms operated by Kucoin had failed to comply with securities laws. And in May the commission announced that Poloniex from Seychelles had not been able to contact him in time.

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