Binance, the world's largest crypto exchange, found itself in an awkward predicament after mistakenly announcing that it was authorized to provide services in Ontario by the Ontario Securities Commission.
The Canadian regulator slammed the company for its "unacceptable" behavior, clarifying that not a single of its entities holds any sort of registration in the country.
In June, Binance told its users from Ontario that their accounts would be closed by the end of the year. This came after the exchange received a warning from the OSC for failing to comply with local securities laws. This was part of the global regulatory onslaught on Binance that the crypto behemoth managed to withstand by reducing leverage and boosting compliance. CEO Changpeng Zhao ditched his usual hoodie for a suit, trying to navigate stormy regulatory waters.
cardEarlier this week, Binance gleefully announced that it would be able to continue operating in Ontario, Canada's biggest province, after ironing out regulatory issues. The exchange said that it had registered as a money services business (MSB).
The OSC, however, was quick to refute this statement, claiming that only six trading platforms have been greenlit to operate in Ontario, and Binance was not on the list.
Crypto asset platforms that have 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 came to light that Binance was asking law enforcement officials for thank you notes, for which it was reprimanded by the U.S. Justice Department.