Cryptocurrency exchange giant, Binance has decided to stop its services to clients from Ontario, Canada, due to mounting regulatory obligations for crypto businesses in the country’s most populous province.
“Regrettably, Binance can no longer continue to service Ontario-based users,” Binance stated in an announcement on Friday.
Additionally, the exchange urged existing traders from the province to close their Binance accounts by December 31, 2021. Moreover, it has updated its terms to label Ontario as a ‘restricted jurisdiction’, which took effect from June 26.
Binance pulled out from the Canadian province following the Ontario Securities Commission’s (OSC) notice to multiple crypto exchanges for their violation of the local securities laws. The regulator issued notice to prominent crypto platforms like Poloniex, Bybit and KuCoin and began taking legal actions against them alleging that they are operating as unregistered platforms.
However, Binance’s sudden move makes it unclear if the exchange has taken the decision after consulting with the local regulator, or it came as a precautionary measure.
Troubles with Regulators
Meanwhile, the crypto exchange mammoth is facing regulatory troubles in multiple other jurisdictions: the most recent one being Banance’s ban from operating in the United Kingdom imposed by the Financial Conduct Authority (FCA).
Moreover, the exchange has been warned by Japan’s top financial regulator for operating in the country without being registered. Interestingly, Binance moved its headquarters from Japan in 2018 amid FSA’s first warning.
In addition, Binance has been flagged and investigated by multiple European regulators for facilitating stock token services. Furthermore, the United States Commodity Futures Trading Commission (CFTC) initiated an investigation against the exchange for illegally offering crypto derivatives trading services in the country.