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Ontario Crackdown on Crypto Exchanges Continues With Binance Leaving the Province

Ontario Crackdown on Crypto Exchanges Continues With Binance Leaving the Province

Cryptocurrency exchange Binance will no longer provide services in the Canadian province of Ontario. The decision comes amid ongoing regulatory pressure on digital asset trading platforms that has already affected the operations of several exchanges.

Crypto Exchange Binance Exits Canada’s Ontario

Binance, which is one of the world’s leading cryptocurrency exchanges by daily volume, has updated customers on a change that concerns crypto traders in Ontario. The Canadian province is now a restricted jurisdiction, the company announced this week.

In a press release, Binance explains the move is part of its continuing compliance efforts. “Binance has updated its Terms of Use to provide that Ontario (Canada) has become a restricted jurisdiction, effective 2021-06-26 at 3:59:59 AM (UTC),” the exchange said, adding:

Regrettably, Binance can no longer continue to service Ontario-based users… We apologize for any inconvenience caused.

The platform advised cryptocurrency traders in Canada’s most populous region to “take immediate measures to close out all active positions by December 31, 2021.”

Exchanges Face Pressure From Securities Regulator

In the past weeks and months, the Ontario Securities Commission has been going after digital asset trading platforms in the province. The regulator wants them to comply with the region’s securities legislation that requires registration, which Binance has probably decided to avoid.

In March, the OSC urged crypto exchanges to reach out to its staff until April 19 to discuss compliance or face legal action. The commission regards crypto platforms providing access to Ontario residents as local operators, as far as securities regulation is concerned. Many have already found themselves in the crosshairs.

This week, the OSC accused BVI-registered Bybit of offering Ontarians to trade securities and derivatives in the form of crypto asset products. Earlier this month, the regulator alleged that two trading platforms run by Kucoin did not comply with the securities law. And in May, the commission said that Seychelles-based Poloniex had failed to contact it in time.

Like Binance, crypto derivatives exchange Bitmex decided to leave Ontario last August, as Bitcoin.com News reported. The platform, which was not a registered operator in the province, announced it was restricting access to Ontario users from September 2020. Bitmex explained the move with restrictions imposed by the OSC.

What are your thoughts on the regulatory crackdown on crypto exchanges in Ontario? Let us know in the comments section below.