Binance users in Ontario would be saying farewell to Binance as provinces set more limitations for cryptocurrency exchanges. The top-tier crypto trading platform announced the decision in a press release on the 25th. The exchange would cut off its offerings to Ontario effective from the 26th of June.
The announcement was released as Binance intends to respect its terms which states adherence to regulatory standards. As pressure from the Canadian province flares, it would be inauspicious for the platform to keep up with its services in the area.
The crypto exchange alerted users in the announcement of the development, describing the province as a “restricted jurisdiction”.
Ontario wants to enact regulatory policies that would touch down on registration. Binance might desire to stay out of this and resorted to exiting the area. The exchange has urged its clients in Ontario to close out all active positions before the last day of 2021.
The Ontario Securities Commission (OSC) is cracking down on active crypto exchanges. Shooting out threats of legal sanctions and accusing some exchanges of non-compliance triggered an earlier exit of Bybit from the province.
The OSC Wants to Minimize the Risks Investors Face While Dealing with Cryptocurrencies
Out of several hundred exchanges in Ontario, the OSC says only 70 of them have begun initiating compliance moves. The commission wants to ensure that investors are somewhat protected from the highly volatile crypto market.
OSC chairman Grant Vingoe said that the 1 trillion USD mark of the cryptocurrency market cap in January was way more than all ETFs and assets under management in the province. He highlighted the importance of regulation to ensure that citizens don’t gamble their funds with the money-thirsty crypto market.
One of the defaulting exchanges, Poloniex, would likely be fined up to $1 million and a ban. However, Canada has been quite receptive to Exchange Traded Funds ahead of the United States.