The Ontario securities regulator has slammed Binance for claiming it is authorized to operate in Canada’s most populous province.
The world’s largest crypto exchange, Binance, found itself in an awkward position after accidentally announcing that it had been authorized by the Ontario Securities Commission to provide services in Ontario.
The Canadian regulator reprimanded the company for its “unacceptable” behavior, clarifying that none of its entities have any form of registration in the country.
In June, Binance told its Ontario users that their accounts would be closed by the end of the year. This comes after the exchange received a warning from the OSC for failing to comply with local securities laws. This was part of a global regulatory attack on Binance that the crypto giant managed to counter by reducing leverage and increasing compliance. CEO Changpeng Zhao abandoned his usual hoodie for a suit, trying to navigate stormy regulatory waters.
Earlier this week, Binance gleefully announced that it would be able to continue operations in Canada’s largest province, Ontario, after addressing regulatory issues. The exchange said it has registered as a Money Services Business (MSB).
However, OSC was quick to refute this statement, claiming that only six trading platforms have been greenlighted to operate in Ontario, and Binance was not on the list.
The regulator also cautioned companies against misrepresenting their registration status as it would actually not bode well for their chances of gaining regulatory approval in the province:Crypto asset platforms that are or will be applying for registration with securities regulators should be aware that misrepresenting their registration status raises concerns about the fitness of the firm and its principals for registration.
Earlier this year, it also emerged that Binance was seeking thank you notes from law enforcement officials, for which it was reprimanded by the US Department of Justice.