The world’s largest crypto exchange, Binance is heavily focusing on complying with regulations of different countries across the globe. Recently, Binance has informed the Ontario Securities Commission (OSC) in Canada regarding the opening of new crypto accounts.
Binance had sent the letter regarding this to the Ontario Securities Commission, Canada in the last week. In that letter, Binance gave some commitments to OSC. This includes “ceasing opening new Ontario accounts,” “ceasing trading in existing Ontario accounts, with exceptions to protect investors, along with winding down its businesses in certain products,” and “providing fee waivers and offering fee reimbursement to certain Ontario users”.
Besides this, Binance added that it’ll provide reports to the OSC staff as well as retain an independent third party. This will ensure the effectiveness of its efforts in implementing its commitments.
In June last year, Binance had decided to withdraw its services from Ontario. The exchange had informed the users in Ontario that they’ll have to close all active positions before 31st December 2021.
In that letter, Binance detailed:
“Binance confirmed to Staff that the trading restrictions were in place for Ontario accounts, and would remain so, including (a) no trading by existing Ontario users, (b) no new Ontario users, and (c) no marketing targeted at Ontario users.”
However, Binance notified users before 29th December that they can continue operations in Ontario. At that time, the Canadian regulator said:
“Binance has issued a notice to users, without any notification to the OSC, rescinding this commitment. This is unacceptable.”
To make matters even more confusing, Binance acknowledged that the announcement was not correct. Finally, Binance admitted that they tweeted “inaccurate information”.