Welcome back to the Tribe! In this post we dive into the news from Ontario of Binance not Regulated.
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Another regulatory debacle for Binance as Canadian authorities say that the world’s leading crypto exchange has not complied with previous instructions and legal orders. Market supervisors in Ontario say the platform has continued to service investors in the province despite publicly announcing a withdrawal of the same offerings.
According to a statement released on Thursday (March 17, 2022) by the Ontario Securities Commission (OSC), the top financial watchdog in the province, Binance is not a regulated entity and not licensed to operate within its jurisdiction. The statement also says that Binance has failed to adhere to a cease and desist order issued back in 2021.
After discussions between the OSC and Changpeng Zhao’s platform regarding regulatory compliance, the crypto company announced to users that it planned to halt all its services and offering in Ontario.
However, the OSC claims that Binance continued to operate within the province and also notified investors that access to the exchange would remain open. The announcement from Binance to its Ontario users was allegedly made on December 29, 2021.
A day later on the 30th, the OSC made a public statement warning that Binance Holdings Limited, Binance Canada Capital Markets Inc, and any member of the Binance group of companies have any sort of regulatory approval to offer financial products related to cryptocurrencies and digital assets.
The OSC’s statement includes details regarding an undertaking signed by Binance pertaining to its actions. An excerpt from the statement reads:
“In the undertaking, Binance confirms that activities involving Ontario residents have ceased, apart from certain permitted actions to protect investors. Additionally, 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.”
The OSC emphasized that crypto companies interested in operation within its jurisdiction must comply with the established policies and rules.
Exchanges and other digital asset providers have been encouraged to apply for a license and follow due process. Currently, the OSC maintains that six crypto trading firms are fully regulated for operations in the province. Users can find these companies on the agency’s official website.
In addition, Ontario’s top financial watchdog has advised Binance to refrain from further illegal conduct or face dire legal actions which could result in a complete ban. Officials from the regulatory agency said:
“This undertaking represents a legally enforceable commitment by Binance to the OSC. The OSC reserves the right to take enforcement action against Binance for any past, present, or future breaches of Ontario securities law not arising from the events described in the undertaking.”
The OSC’s statement is the latest in a slew of regulatory concerns pertaining to Binance’s operations in a plethora of locations. CZ’s crypto exchange has also faced compliance challenges in areas like the UK, Japan, and Malta.
Yesterday, during the Senate Banking Committee hearing on digital assets and crime, the US senator who has been a proponent of preventing sanction evasion using cryptocurrency, introduced a bill that she believes will effectively achieve her aims with the support of 10 other co-sponsors.
Read more here…
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The post Binance Not Regulated In Ontario Says Securities Commission appeared first on San Francisco Tribe.
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