Binance has withdrawn from the province of Ontario, where it previously operated as an exchange, due to increasing regulation.
To comply with legislation put in place in Ontario, Binance stated on Friday that all users registered in the province must close out any open positions by December 31, 2021.
Over the last few weeks, the Ontario Securities Commission (OSC) has started pursuing legal action against unregistered cryptocurrency exchanges, such as Poloniex, Bybit, and Kucoin. The regulator has accused these exchanges of violating securities rules in the province.
Binance’s Pre-Emptive Move
The way Binance has decided to operate implies that the exchange does not want to register with the Ontario Securities Commission and follow the securities regulations of the province. Similar to the last decision, in December of last year, crypto derivatives exchange BitMEX banned all Ontario-based customers to avoid having to comply with the securities rules of the province.
This week, the Financial Services Agency of Japan issued another warning to Binance, the crypto exchange operator. The authority said that Binance has still not registered in the nation.
What is Binance?
Changpeng Zhao (CZ) started Binance as a means to create high-frequency trading technologies. Initially, Binance was established in China, but afterward moved to a different location outside of China due to China’s increasing restrictions around cryptocurrencies.
Binance places an emphasis on altcoin trading. Many people consider Binance to be one of the most popular cryptocurrency exchanges, currently offering trading in about 500 different cryptocurrencies and tokens (around ten times fewer than the total names offered to US-based customers, though).
In addition to the large number of cryptocurrencies it supports, Binance offers trading in numerous unique tokens, including Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC), Dogecoin (DOGE), and its own coin, Binance Coin (BNB).
The Binance exchange has garnered considerable notoriety due to its cheap transaction costs, great liquidity, and extra savings if customers pay in the native BNB cryptocurrency tokens. It became live in 2017 with its exchange services.
Binance is named from the terms “bitcoin” and “finance,” which, when combined, form “binance.” The processor is able to handle approximately 1.4 million transactions per second. It serves as a gateway to trade in over 150 cryptocurrencies, including Bitcoin, Ethereum, Litecoin, and BNB tokens, among others.