Binance Pressured By Canadian Regulators Although Now Leaving The Country
- Despite the fact that Binance has exited the local market, the Ontario Securities Commission is examining it.
- The Canadian Securities Commission is looking into the exchange for suspected securities law violations.
- Binance has subsequently been summoned by the OSC to provide documentation for the probe.
A document published by the Ontario Securities Commission (OSC) suggests Canada’s biggest watchdog is examining Binance’s activities in this nation, weeks after the global crypto behemoth announced its withdrawal from Canada because it did not agree with new restrictions imposed by the country’s authorities.
The OSC issued an investigative order to the world’s biggest digital asset exchange on May 10, according to a filing this month with the Capital Markets Tribunal. Binance announced its withdrawal from the market two days later, citing new regulatory instructions on stablecoins and investment limitations.
According to the petition, the OSC’s ruling ordered “an exceptionally wide examination into whether Binance may have taken efforts to evade Ontario securities legislation and compliance procedures in regard to Binance.com or engaged in conduct contrary to Ontario securities law and/or the public interest.”
The exchange has been subjected to increased regulatory and legal attention in a number of places in recent years, most notably by the US Commodities Futures Trading Commission, which has filed a lawsuit against the company and its CEO, Changpeng Zhao. Although the order’s specifics were not immediately accessible, Binance said that the OSC was motivated by the CFTC’s action.
When questioned why Binance chose to exit the Canadian market, Zhao, a Canadian citizen, said in a Twitter Post on Wednesday that he no longer thought it was feasible to run a profitable company there due to the new rules.
The OSC has subsequently summoned Binance to provide papers for the probe, which the exchange stated earlier this month it could not comply with because the summons was not detailed enough. According to a petition issued on Monday, the Capital Markets Tribunal ordered the exchange to comply with the summons at a hearing on May 26.
Despite its attempts to expand globally, including launches in areas like the UAE and Thailand, Binance has recently faced increased regulatory and legal scrutiny across various jurisdictions. The transaction has been the subject of litigation, investigations, and heightened regulatory supervision. The OSC’s investigative order adds to the exchange’s long list of legal difficulties.
Binance’s departure highlights the problems created by Canada’s enhanced cryptocurrency regulations, which were implemented in reaction to the bankruptcy of crypto behemoth FTX last year. Several large exchanges, like OKX and Bybit, have also left the Canadian market, while Coinbase Global Inc. has decided to remain and seek registration under the new legislation.
Earlier today, the European Banking Authority issued draft guidelines advising crypto businesses to keep an eye out for consumers utilizing privacy coins in order to detect suspected money laundering activities. As a result, Binance plans to delist privacy coins in France, Italy, Poland, and Spain.
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