The Ontario Securities Commission (OSC) has been informed that Binance will no longer accept new customers from the Canadian province of Ontario. The industry’s largest exchange has also said that it will stop trading for current Ontario-based accounts and will offer cost waivers and reimbursements to some consumers.
Binance would not open new accounts in Ontario
The Ontario Securities Commission (OSC) received an undertaking from Binance Holdings Limited and Binance Canada Capital Markets Inc. on March 17. According to Binance, the company would not open new accounts in Ontario, would cease trading in existing accounts in the province, and would offer fee waivers and reimbursements for some Ontario users.
A third party will be hired to monitor compliance with these requirements and report back to the commission.
“This undertaking represents a legally enforceable commitment by Binance to the OSC,” the regulator said in a release. “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.”
These commitments, which were given to the OSC here, are supported by Binance’s admission of the reality of the exchange’s operations in Ontario. After “allegedly putting in place” limitations, the exchange confirmed that Ontario investors were able to continue trading on its platform.
Binance’s OSC pledge represents the exchange’s future “legally enforceable” commitment to the regulator.
“Binance has made a legally enforceable promise to the OSC with this undertaking.” The OSC noted in a statement that it “reserves the right to take enforcement action against Binance for any past, present, or future violations of Ontario securities law not originating from the events outlined in the undertaking.”
Binance announced in 2021 that it will cease operations in Ontario. On the other side, on December 29, 2021, Binance incorrectly informed investors that it had been granted a license to continue operating in Ontario. As a result of these developments, the OSC announced on December 30, 2021, that no member of the Binance group of companies is registered to trade securities in Ontario.
According to Binance’s promise to the OSC, the exchange “today accepts that was not proper.” According to the OSC, no member of the Binance group of companies is registered to trade securities in the province. In a statement issued yesterday, the OSC stated, “This remains the case.”
The exchange admitted to the OSC that trading limits for Ontario accounts were in place on December 31, 2021, according to Binance’s statement to the regulator.
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