Binance has assured the Ontario Securities Commission, in a letter last Wednesday, that it will not open new accounts in Ontario. The crypto exchange is committed to cease trading for existing Ontario-based accounts. It will also provide fee waivers and reimbursements to certain users.
Binance said it will make reports to Ontario Securities Commission staff and retain an independent third party. The crypto exchange will work towards ensuring the effectiveness and implementing its commitment. In June 2021, Binance decided to withdraw its services and announced that Ontario users need to close all active positions by December 31, 2021.
The platform had put in place trading restrictions for Ontario accounts. It highlighted that there would be no trading by existing Ontario users, no new Ontario users, and no marketing targeted at the same. But on December 29, Binance said Ontario users it was allowed to continue its operations. The Ontario Securities Commission had said that Binance had given notification to users but not to OSC. It had described this as “unacceptable”.
Binance said Ontario investors were able to trade after the restrictions had been placed. It pointed out that the customer service team had tweeted inaccurate information saying that Ontario users could trade after January 1, 2022, if their account was already open. The platform acknowledged the misinformation.
As such, Binance told Ontario Securities Commission that it is committed to pursuing a regulatory path. It will comply with Ontario securities law.