Binance has ceased its operations in Ontario after opting not to comply with securities law. In a blog post, the Cayman Island-based crypto exchange platform notified clients to close their accounts by 31st December this year.
A UK-based affiliate of Binance has also been banned by Financial Conduct Authority (FCA) for failing to register. The form has until the end of June to remove advertisements and promotions targeting UK users.
FCA requires only crypto exchanges based in the UK to register with them. The rule does not apply to foreign platform like Binance and Coinbase. That means that UK users of Binance’s main site were not affected by the FCA ruling.
Binance crackdown comes at a time when the crypto economy is under intensive scrutiny globally. In the past 18 months, droves of investors channeled their funds into the crypto economy resulting in new crypto-related financial products. However, concerns are still high about fraud and money laundering activities.
In the US, Binance Holdings is also under probe by the Securities and Exchange Commission (SEC). Japan also warned Binance to stop operating in the country if they do not get registered.
In Ontario, 48 platforms are in the process of registration. Bybit, KuCoin, and Poloniex are facing enforcement action for failing to comply. Hundreds of exchanges are still unregistered and continue to operate unregulated in Ontario.
It is not yet clear why Binance is terminating its operation in Ontario. Speculations are that Binance might have received a notice from Ontario Security Commission to cease its operations, or maybe the company voluntarily decided to shut down in the province.