The world’s largest cryptocurrency exchange – Binance – has reportedly forbidden users in Ontario, Canada from opening new accounts on the platform. Tensions between the company and the local financial regulator peaked last summer when the former left the sector.
Restrictions for Ontario customers
In June 2021, Binance announced its decision to withdraw from Ontario, Canada, after the Ontario Securities Commission (OSC) accused the company of failing to meet local regulatory requirements.
In December, however, Binance informed its users that it was allowed to continue its operations in the Canadian province while still unregistered.
Amid the confusing environment, the exchange has vowed to offer fee waivers and reimbursements to some Ontario customers who may have been hurt by the uncertainty. Binance further said that it will appoint an independent third party to oversee these commitments.
According to a recent Reuters report, the dispute between the two entities went a step further as the trading site stopped opening new accounts for local users.
This comes months after the company faced increased criticism from global watchdogs regarding its operations. However, recent months have been more productive for the firm’s expansion.
Earlier this week, the Central Bank of Bahrain (CBB) granted a crypto-asset service provider license to the exchange. The authority enabled Binance to provide clients with digital asset trading opportunities, custodial services, and portfolio management under the supervision of a local watchdog.
Shortly after, the platform got a green signal from Dubai as well. The virtual asset license allowed investors access to “limited exchange products and services.” However, Binance’s operations will be strictly monitored and regulated under the Virtual Asset Regulatory Authority (VARA).
OSC’s dispute with Poloniex
Binance isn’t the only crypto exchange OSC has had a problem with. In May last year, the regulator accused Polo Digital Assets (known as Poloniex) of not complying with Ontario regulations. Specifically, the trading site failed to sign up with the agency promoting its services to customers.
“Poloniex has never filed a prospectus with the Commission or been exempted from the prospectus requirement,” the OSC said.
Prior to the allegations, the regulator urged cryptocurrency exchanges in Ontario to comply with regulations to avoid facing potential sanctions. Over 70 such entities have done so, with Poloniex not being one of them:
“Despite this warning, Poloniex did not contact the Commission until April 19, 2021, or at any time to begin compliance discussions.”
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