By Shelly Melancon (Switzerland)
Binance, one of the world’s leading cryptocurrency exchanges, has barred users in Ontario, Canada from using the exchange as it can no longer offer its trading services to Ontario users. This new development is in light of the regulatory actions the Ontario Securities Commission (OSC) is taking against exchanges in the province. Several exchanges before Binance have disabled their trading operations in Ontario.
Binance’s Notice Advises Ontario Users To Close Active Positions
Binance issued a notice on June 26 intimating users of the new development. The OSC had made it mandatory for all exchanges operating in the Province to comply with registration regulations. The regulations require exchanges to update their KYC/AML guidelines to curb illegal activities on exchanges. Most exchanges have been unable to comply with the said regulations for fear of overregulation, leading to preventing users in the concerned province from accessing the trading services. Binance has advised crypto traders to exit all active positions by the end of the year.
This week, Canada’s OSC accused another crypto exchange, Bybit, of offering securities and derivatives to Ontario traders in the form of crypto assets. The commission also alleged that Kucoin did not comply with securities provisions. Meanwhile, Bitmex closed operations in Ontario late August citing harsh regulations as the reason. Interestingly, Canada approved three cryptocurrency (Bitcoin) ETFs earlier this year.
Also read:Crypto Regulations on the Increase
Lately, regulatory attempts by financial and securities bodies in most countries, especially China, are now at an all-time-high. China recently issued a ban against crypto mining activities forcing miners to migrate out of the country in droves. Also, The UK’s Financial Conduct Authority (FCA) warned investors in the country earlier this week against investing in cryptocurrencies because they are unregulated. The FCA further threatened to impose fines on or initiate legal actions against exchanges that have refused to comply with regulatory legislation.
Regulatory actions have also been high in the US. Binance is currently operating in 43 out of the 50 states as it was forced to close operations in 7 states. The Biden administration has implemented a law that imposes a 40% tax on crypto transfers above $10,000. The Internal Revenue Service (IRS) has also called for crypto regulations. In one of his comments, head of IRS, Charles Retting, had said cryptocurrencies were created to stay off the radar. Some major banks have disabled crypto transactions on their customers’ accounts.
The move towards CBDCs may not be unconnected to the stringent legislation most of these countries are imposing on crypto and exchanges. As they make attempts towards central bank digital currency, harsher regulations on crypto exchanges may surface. According to reports, Canada is also looking at a CBDC.
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