Binance, in a Wednesday undertaking to the Ontario Securities Commission (or OSC in Canada), stated that it will stop activities that involve Ontario residents. Binance also stated that it will no longer open new Ontario accounts and would provide reimbursements and fee waivers to certain Ontario users who are under the control of a third party.
This undertaking seems to end a dispute that began in June, when Binance announced it would no longer serve Ontario accounts. Customers were told to close all active positions by the year’s end. A month before Binance’s announcement, OSC issued a new prospectus with registration requirements for cryptocurrency exchanges.
Binance informed investors in December that it was permitted to continue operating in the province, despite not having registered. This claim was quickly denied by the OSC. Binance admitted in Wednesday’s undertaking that it was not true. Binance also acknowledged that it had told Ontario investors Jan. 1 via email that trading and onboarding were limited, but continued to allow them trade as normal. Ontario users were allowed to close their positions within 90 days of the undertaking.
OCS stated that it could take enforcement action against Binance for any past or future breaches of Ontario securities laws not resulting from the events in the undertaking.
This regulator in Ontario is known for its strict stance against crypto exchanges. The regulator recently took legal action against several exchanges operating in the province, including Bitfinex and OKEx. Bitbuy, Coinberry and CoinSmart were all allowed to operate in Ontario as of January. In August, the OSC banned Tether (USDT).
Binance will still be available in all Canadian provinces. The exchange is regulated by the Alberta Securities Commission.