TORONTO – The Ontario Securities Commission (OSC) is notifying investors that Binance is not registered under securities law in Ontario. This means they are not authorized to offer trading in derivatives or securities to persons or companies located in the province.
Binance represented to OSC Staff that no new transactions involving Ontario residents would occur after December 31, 2021. Binance has issued a notice to users, without any notification to the OSC, rescinding this commitment. This is unacceptable.
No entity in the Binance group of companies holds any form of securities registration in Ontario.
Unregistered platforms operating in Ontario may be subject to action, including temporary orders, to ensure compliance which could affect their ongoing local business operations.
To date, six crypto asset trading platforms are registered in Ontario. The OSC continues to work with firms that initiated compliance discussions with Staff, further to its March 29, 2021 warning, and for which it is Principal Regulator, to assess the appropriate path to registration.
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.
Investors can check the registration status of a crypto asset trading platform by using the National Registration Search feature on the CSA website, or calling the OSC’s Contact Centre.
The OSC also continues to add unregistered crypto asset trading platforms to its Investor Warning List.
The mandate of the OSC is to provide protection to investors from unfair, improper or fraudulent practices, to foster fair, efficient and competitive capital markets and confidence in the capital markets, to foster capital formation, and to contribute to the stability of the financial system and the reduction of systemic risk. Investors are urged to check the registration of any persons or company offering an investment opportunity and to review the OSC investor materials available at https://www.osc.ca.
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