The exchange has been sued in Canada for allegedly violating securities law and selling derivatives to retail investors without being properly registered to operate.
The case is now before Ontario’s Superior Court of Justice. Let’s discover more about this important news for Binance.
Binance Faces Lawsuit in Canada Over Securities Law Violations
The suit, filed by Christopher Lochan and Jeremy Leeder, accuses Binance of breaching the Ontario Securities Act (OSA). They are claiming that the exchange failed to cease its operations in Ontario despite not being licensed to do so.
The suit requests damages and seeks for Binance to cease its derivatives offering in Canada. The plaintiffs claim Binance’s operations risk tens of thousands of Canadian users subscribed to its derivatives product.
🟡 @binance finds itself embroiled in legal turmoil as a new class-action lawsuit alleges violations of securities laws in Canada. pic.twitter.com/kCAmXUQNIR
— Cointelegraph (@Cointelegraph) April 23, 2024
Recent data notes that Binance accounts for 58% of all spot trading volumes across all centralized exchanges. In addition to being the market leader for spot crypto trading, Binance runs the largest derivatives market. Binance, Bybit, and OKX have a significant influence on the derivatives market.
The lawsuit also claims that the exchange failed to cease operations in Ontario as it had previously announced. The crypto exchange faced intense regulatory pressure from the Ontario Securities Commission (OSC) in 2021. Interestingly, the OSC is still looking into Binance. Canada isn’t the first country where Binance has faced regulatory concerns. Several nations have accused the exchange of having an illegal presence on their shores.
More About Binance
Recently, Nigerian authorities arrested two Binance officials. Nigerian lawmakers claimed the exchange played a role in the manipulation of the Nigerian naira.
Binance executive Tigran Gambaryan will remain in prison in Nigeria until at least May 17, after his trial for money laundering ends. @cheyenneligon reportshttps://t.co/HafzdB7YNL
— CoinDesk (@CoinDesk) April 23, 2024
In addition, the trading platform is currently facing legal troubles in the Philippines. The country’s securities regulator claims the exchange lacks the required registration to operate.
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