Cryptocurrency exchange Binance has shed light on its decision to leave Canada, saying that it is being investigated by the Ontario Securities Commission (OSC) over whether its platform complies with local regulations and compliance controls.
The OSC served the world’s biggest crypto exchange with an investigation order on May 10 of this year. Two days later, Binance announced that it was leaving Canada, citing new regulatory guidance related to stablecoins and investor trading limits.
Despite Binance’s departure, the OSC is continuing with a broad inquiry into whether the crypto exchange took steps to circumvent Ontario securities law and compliance controls.
Binance has faced increasing regulatory and legal scrutiny in multiple countries over the last few years, including a lawsuit from the U.S. Commodity Futures Trading Commission (CFTC).
The OSC has sent summons to Binance to supply documents for its ongoing investigation, which Binance has refused to comply with, saying it is not required to do so as it has left Canada.
Canada’s move to impose toughened rules on cryptocurrency companies comes in the wake of the $8 billion U.S. collapse of crypto exchange FTX last November.
Binance, which has a registered office in the Cayman Islands, is privately held. Its stock does not trade on a public exchange
