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Canadian Authorities Clap Back Against Binance in Ontario

Initial encouragement seems to have disappeared as the Ontario Securities Commission bares its teeth.

Binance Faces Regulatory Opposition

After this week’s headline regarding regulatory approval in Canada, Binance will be dismayed at the latest opposition to surface from Ontario. 

Binance had announced that they had received a financing license in Canada in encouraging news earlier this week. The regulatory approval had, however, clearly not been met with unanimous agreement after opposition in Ontario. 

“The Ontario Securities Commission (OSC) is notifying investors that Binance is not registered under securities law in Ontario. This means they are not authorized to offer trading in derivatives or securities to persons or companies located in the province.” Ontario Securities Commission announced in a statement on December 30.
Source: Binance - Many users were met with this message as they attempted to access services

Binance’s recent registration as a money services business with Canada’s anti-money laundering authority FinTrac seemed to indicate the direction that regulatory bodies were willing to take in the country. The latest announcement will further confuse users and perhaps shows there is still some way to go for Binance to appease the relevant authorities.

Binance sought to further clarify the ‘miscommunication’ in an official statement to The Block on December 30:

“Unfortunately, there has been a miscommunication. Earlier in the week we notified users in Ontario that they did not need to close their accounts by December 31, 2021 following discussions with the Investment Industry Regulatory Organization of Canada and the Alberta Securities Commission regarding registration across Canada. However, we did not meet directly with the Ontario Securities Commission about our intentions, which was clearly an error that we are correcting. We will provide updated guidance to users as soon as possible."

The statement suggests that the restrictions are simply a result of not having conducted the relevant meeting. Whether this matter can be quickly attended to and find a mutual agreement is not yet clear, but it is becoming apparent that each regulatory body will be unequivocal in its handling of crypto approval. 

As far as Binance is concerned, they appear to be taking all the necessary steps to appease the relevant bodies. This latest development will simply be another checkpoint toward wholesale approval and adoption.

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