The Ontario Securities Commission (OSC), Canada’s regulator, released on Thursday (30) a Remark repudiation of Binance due to a breach of an agreement with the entity.
After being warned by regulators in June that it could not operate in the country without a license, the cryptocurrency broker said Canadian clients must close all positions by December 31.
This week, however, Binance has backed down. In a note to customers emailed on Wednesday (29), the company said it had taken the first steps to obtain its license in Canada and thus could continue to offer its services in the country.
This “authorization” would have been the result of the exchange’s continued and positive cooperation agreement with Canadian regulators. “This registration allows us to continue to operate in Canada and resume operations in Ontario while we pursue full registration,” he said.
For the regulator, the publication was unfortunate, as the company still does not have a business license. Under the headline “Binance is not registered in Ontario,” the agency wrote:
“Binance has issued a notice to users, without any notification to the OSC, terminating this engagement. This is unacceptable. No entity in the Binance group has any form of registration in Ontario, ”the regulator said, adding that unregistered platforms could be subject to temporary measures that could affect their operations.
On this record, on Monday (27), Changpeng Zhao, CEO of Binance, shared a Twitter report. protocol from “Binance Canada Capital Markets Inc” to FINTRAC, a Canadian financial intelligence agency similar to the Brazilian Coaf.
As stated in the document, registration was requested on the 24th, valid until 2024. However, the CSO does not mention this registration request in its communication.
Binance in Canada
Earlier this year, Ontario regulators stepped up inspections of brokers operating in the region, and Binance was one of them.
At the time, the company informed users that its terms of service had been updated to make the region of Canada a restricted jurisdiction.
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