OSC Pursues Binance Investigation, Unfazed by Crypto Exchange’s Departure from Canada | National Crowdfunding & Fintech Association of Canada

Financial Post | Barbara Shecter | May 30, 2023

Image: Unsplash/Kanchanara

Documents show OSC attempting to use its powers to compel the production of documents and data from Binance and potentially third parties

• Binance Under Investigation by the OSC
  • The Ontario Securities Commission (OSC) has begun an investigation into the global cryptocurrency exchange, Binance. Despite Binance's recent exit from Canada due to disagreements with the new regulatory rules, the OSC is utilizing its powers to compel Binance, and potentially third parties, to produce documents and data pertinent to the inquiry.

See:  Dispelling FUD: Why Binance’s Exit from Canadian Crypto Markets Strengthens Canada’s Ecosystem

• Binance Disputes the Inquiry
  • Binance is disputing the OSC's efforts, stating that they violate a 2022 undertaking agreement that supposedly protects Binance from enforcement actions related to past conduct. As the world's largest cryptocurrency exchange, Binance's conduct and operations, which included Canadian entities, have significant implications for the global cryptocurrency market.
• New Canadian Regulations Impacting Crypto Exchanges
  • The initiation of the OSC investigation comes after Binance's withdrawal from Canada, a decision primarily influenced by new stringent regulations imposed by the country in the aftermath of the FTX Inc. collapse in November 2022.
  • The stricter regulations included aspects like the non-approval of Binance's stablecoin (BUSD) as a value-referenced asset and investment limits on certain cryptocurrencies.

Binance is maintaining that the OSC's current actions violate a prior agreement and represent an overreach of its authority:

The document contends that the investigation order is 'a breach of the Commission’s settlement agreement with Binance' and should be revoked because it is 'an abuse of the Commission’s process, as the repudiation of a settlement agreement and re-litigation of past conduct that led to the Undertaking.

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• Source: https://ncfacanada.org/osc-pursues-binance-investigation-unfazed-by-crypto-exchanges-departure-from-canada/