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Binance Earns Strong Rebuke From OSC After Statement To Canadian Users

Binance Earns Strong Rebuke From OSC After Statement To Canadian Users

A lot is going on between Binance and regulatory authorities in Canada, and users based in Ontario are caught in the middle of it. The confusion arose after Binance reached out to users based in Ontario, communicating to them that it would not be ceasing its operations and that it was cooperating with regulatory authorities to register itself in Canada successfully. 

This statement led to a stern reprimand by the Ontario Securities Commission. 

Binance Reaches Out To Users 

Binance reached out to its users over email, stating that it would not be pulling the plug on its Ontario operations after all, and its talks with regulators had been fruitful, with Binance on track to register in Canada. 

The leading cryptocurrency exchange stated that its registration with FINTRAC (Financial Transactions and Reports Analysis Center of Canada) allows it to resume operations in Ontario, while it also works to get full registration. It also stated that in light of these developments, users in Ontario need not close their accounts by December 31, as they had earlier been instructed. 

“As a result of ongoing and positive cooperation with Canadian regulators, there is no need for Ontario users to close their accounts by December 31, 2021.”

Ontario Securities Commission Issues Stern Rebuke 

The Ontario Securities Commission was quick to reprimand Binance for telling its users that it would be able to continue operations in Ontario while still lacking the requisite regulatory clearance to do so. In a statement, the OSC stated, 

“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.”

According to the OSD, Binance is going back on its commitment that no new transactions would be carried out on its platform after December 31. The OSC further stated, 

“No entity in the Binance group of companies holds any form of securities registration in Ontario.”

Binance Withdraws Singapore License Application 

Binance has also backed out of its application for its license to operate in Singapore, announcing that it will be refocusing its Singapore strategy to become a “blockchain innovation hub.” The development comes after Binance ran into challenges regarding regulation with the Monetary Authority of Singapore (MAS). Binance had earlier stated that it would fully cooperate with the MAS and other governmental regulatory authorities but has now withdrawn its application. 

Binance In Talks To Open Cryptocurrency Exchange 

Binance is also in discussions with Indonesia’s PT Telkom and PT Bank Central Asia to set up a crypto exchange. Indonesia is a crypto-friendly nation, and the addition of a crypto exchange in the country would significantly boost the growing Indonesian crypto industry. A Binance spokesperson commented on the matter, stating, 

“What is important to note is that we are supportive of the sustainable growth of the blockchain industry globally, and we are constantly looking at business opportunities in every country.”

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.