Binance Investigated by OSC Despite Canadian Departure
The Ontario Securities Commission (OSC) is not letting Binance off the hook despite the cryptocurrency exchange’s decision to exit the Canadian market. Just weeks after Binance’s announcement that it was pulling out of Canada due to disagreements with new regulatory rules, the OSC revealed its ongoing investigation into the platform’s conduct in the country.
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Documents filed by Binance and made public by the regulator on May 30 shed light on the OSC's attempts to leverage its powers to obtain documents and data from Binance and potentially third parties. Through summons and other means, the OSC aims to delve deeper into Binance's operations. However, Binance is fighting back, seeking to quash these efforts.
Interestingly, the OSC's investigation was initiated on May 10 and 11, just one day prior to Binance's announcement of its Canadian exit. Binance argues that a previous agreement reached with the OSC in 2022, known as an undertaking, prevents the regulator from taking enforcement action based on past conduct.
According to Binance, this earlier agreement should shield it from further scrutiny.
This development comes after Binance had already tangled with the OSC in 2021 and 2022 regarding its ability to serve Canadian clients. The clash between the cryptocurrency giant and the country's largest watchdog reflects the ongoing challenges faced by crypto exchanges in Canada's evolving regulatory landscape.
The OSC's investigation into Binance's conduct in Canada serves as a reminder that regulatory authorities are actively monitoring and scrutinizing the cryptocurrency industry. As the market continues to evolve, exchanges and platforms must navigate regulatory requirements and compliance standards to ensure trust and stability in the crypto space.
The outcome of this investigation will undoubtedly have implications for both Binance and the broader cryptocurrency industry in Canada.
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