Binance Stops Opening New Accounts for Ontario Users (Report)

The world’s largest cryptocurrency exchange – Binance – has reportedly forbidden users in Ontario, Canada, to open new accounts on the platform. The tension between the company and the local financial regulator peaked last summer when the former quit the region.

Restrictions for Ontario Clients

In June 2021, Binance announced its decision to withdraw from Ontario, Canada, as the Ontario Securities Commission (OSC) alleged the company of failing to meet local regulatory requirements.

In December, though, Binance informed its users that it is allowed to continue its operations in the Canadian province while still being unregistered.

Amidst the confusing environment, the exchange vowed to provide fee waivers and reimbursements to certain Ontario clients who the uncertainty might have harmed. Binance further asserted it will hire an independent third party to oversee these commitments.

According to a recent report by Reuters, the dispute between the two entities took one step further as the trading venue stopped opening new accounts for local users.

This comes months after the company faced enhanced criticism from global watchdogs in regards to its operations. However, recent months have been more productive for the firm’s expansion.

Earlier this week, the Central Bank of Bahrain (CBB) granted the exchange a crypto-asset service provider license. The authorization enabled Binance to provide digital asset trading opportunities, custodial services, and portfolio management to customers under the supervision of the local watchdogs.

Shortly after, the platform received a green light from Dubai, too. The virtual asset license allowed investors to access “limited exchange products and services.” However, Binance’s operations will be strictly monitored and regulated under the Virtual Asset Regulatory Authority (VARA).

The OSC’s Dispute With Poloniex

Binance is not the only crypto exchange with which the OSC has had an issue. In May last year, the regulator accused Polo Digital Assets (better known as Poloniex) of not abiding by Ontario rules. Specifically, the trading venue failed to sign up with the agency while promoting its services to customers.

“Poloniex has never filed a prospectus with the Commission or obtained an exemption from the prospectus requirement,” the OSC stated.

Prior to the accusation, the watchdog urged crypto exchanges in Ontario to comply with regulations to avoid facing potential sanctions. More than 70 such entities have done that, with Poloniex not being one of them:

“Despite this warning, Poloniex did not contact the Commission by April 19, 2021, or at any time to start compliance discussions.”