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Binance’s Authorization to operate in Ontario Denied, Says Regulator

The Ontario Securities Commission has stated Binance, the crypto exchange does NOT have permission to operate in the province.

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Photo by surangaw / Envato

The world’s largest crypto exchange when it comes to trading volume, Binance, has no authorization to operate in Ontario, according to the province’s securities regulator.

In the given statement, the OSC or Ontarian Securities Commission has duly notified its investors that Binance hasn’t registered under the Securities’ law in Ontario.

The press release states, “This means they are not authorized to offer trading in derivatives or securities to persons or companies located in the province.”

This statement is followed by the crypto exchange users in Ontario who received emails earlier in the week that stated they’d be able to continue their operations in Canada’s most populous province.

Binance stated that “As a result of ongoing and positive cooperation with Canadian regulators, Binance in Canada has been successful in taking its first steps on the regulatory path by registering as a Money Service Provider with FinTrac.”

They also added that “there’s no need to for Ontario users to close their accounts by December 31, 2021.”

Of course, the notification received by the Ontarian users probably is the result of Biannce’s Canadian entity last week’s registration, which it did as a money services business with FinTrac, the anti-money laundering authority in Canada.

In June, once the OSC moved for the restriction of centralized crypto exchanges offering derivatives products like Poloniex, ByBit, KuCoin, etc. Binance was able to give the information to their Ontario-based users that they absolutely needed to close their active positions by the end of the year.

“Binance represented to OSC Staff that no new transactions involving Ontario residents would occur after December 31, 2021. Binance has issued a notice to users, without any notification to the OSC, rescinding this commitment. This is unacceptable,” the OSC mentioned.

They also made sure to emphasize “no entity in the Binance group of companies holds any form of securities registration in Ontario.”

At the moment, The Canadian Securities Administrators lists 6 crypto trading platforms that happen to be registered both nationwide as well as in Ontario. These are Wealthsimple, Coinberry, Netcoins, CoinSmart, Fidelity, and Bitbuy.

This marks yet another huge setback for Binance, which the crypto exchange has been facing all over the world this whole year. For instance, it didn’t have a lot of luck in Singapore, which added it to its Investor Alert List, a list that includes entities that might have “been wrongly perceived as being licensed or regulated by MAS.”

Of course, it did receive an in-principle approval in Bahrain, so that’s good news for the exchange. On top of that, it recently signed a Memorandum of Understanding with the Dubai World Trade Center Authority, with the objective there being the establishment of an industry hub.

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