Binance Set to Cease Operations in Ontario Amidst Regulatory Scrutiny

• Binance submits an undertaking to cease operations in Ontario.
• The exchange had previously declared it was leaving the region at the end of last year.
• Despite regulatory woes in Ontario, Binance is recording wins in the middle east.

Binance has revealed that it would be stopping its trading operations in Ontario, Canada. It comes after an almost year-long back and forth with regulators in Ontario.

Broken Promises And Struggles With The OSC

Binance submitted an undertaking to the Ontario Securities Commission (OSC) on Thursday, confirming that it would be ceasing its operation in the region. It comes after the leading global crypto exchange failed to do so in December of last year, as agreed with the OSC.

In the latest undertaking, Binance says, it will restrict people in Ontario from creating Binance accounts, stop trading activities on its platform in the region, waive fees, reimburse fees of certain current users, give scheduled reports as to its progress to the OSC as well as retain a third party to ensure compliance with the stated commitments. It will not be the first time Binance will make such statements in Ontario, but now with a legal undertaking, the tussle with the regulators has ended.

The OSC, in their release, cited that last year, “Binance publicly announced its intention to withdraw its services from Ontario. However, on December 29, 2021, Binance falsely notified investors that it was allowed to continue its operations in Ontario.” The cited notification went against the company’s statement in June 2021 that it would be terminating its services in the region at the end of December 2021.

The OSC released a statement on December 30 to confirm that Binance was not registered to issue any form of investment or securities to the people of Ontario. Binance, in turn, responded to the statement assuring the OSC that plans to execute the restrictions were still in place. However, users of the platform have continued to trade despite these assurances.

Binance has said in the undertaking that it plans to be regulatory compliant with OSC regulations. Notably, Binance continues to function in other regions of the country. While the rapid adoption of crypto in the last couple of years has brought growth, global regulators have also put the nascent market under scrutiny.

Global Regulations

In the last couple of years, the crypto industry has grown astronomically. Regulators globally have begun to take notice. There are a lot of concerns surrounding the volatile nature of digital assets, how criminals can use them in illicit activities, and environmental harms.

However, regulators in developed nations have also recognized this new technology’s potential in shaping the future. Developing countries like Peru, Brazil, and Thailand have implemented policies to improve the adoption of digital assets in recent times. Notably, El Salvador has become famous as the first country to adopt Bitcoin as legal tender.

While Binance appears to be struggling with regulators in Ontario, the exchange has recorded some new regulatory successes in the middle east. For example, the exchange last week obtained licenses to operate in Dubai and Bahrain.