Binance Notifies Canadian Regulator It’s ‘Committed’ to Ceasing Crypto Trading Services

The cryptocurrency exchange Binance informed the Ontario Securities Commission that it intends to stop opening new accounts and to wind down certain services in order to comply with regulations.

Binance promises to increase compliance efforts

On Wednesday, Binance, a cryptocurrency exchange, wrote a letter to Ontario Securities Commission (OSC).

Binance stated that it would be making a number of commitments to the OSC. These include “ceasing the opening of new Ontario accounts”, “ceasing trading within existing Ontario accounts, with exceptions for investors along with winding up its businesses in certain product lines,” and “providing fee waivers” and fee reimbursement to certain Ontario residents.

Binance will also report to the OSC staff and retain an outside party to help ensure that its efforts to fulfill its commitments are effective.

Binance announced that it would withdraw its services in Ontario by June 2021. In June 2021, the exchange informed Ontario users that all active positions must be closed by December 31, 2021.

Binance stated in its letter that Dec. 31st last year was Binance’s birthday.

Binance confirmed that trading restrictions for Ontario accounts were in effect and would continue to be so. This includes (a) no trading from existing Ontario users (b) no new Ontario user (c) and no marketing targeting Ontario users.

Binance informed Ontario users on Dec. 29 that it was permitted to continue operations in Ontario. At the time, the Canadian regulator stated that Binance had issued a notice to users without notifying the OSC. It was rescinding its commitment. This is unacceptable,” Binance acknowledged that the announcement was incorrect.

Binance acknowledged in its letter, “Despite the representations made by [OSC] staff to investors, Ontario investors were still able to trade after the restrictions were apparently in place.”

Binance also admitted that it had tweeted inaccurate information to inform an Ontario user that they could trade after Jan 1, 2022 as normal if their account is already open. Binance now admits that this was incorrect.

Binance informed the regulator it is committed in following a regulatory route to ensure compliance with Ontario securities laws.