Is Binance Still Banned in Ontario as of 2022?

Many Ontarians are still wondering what the status of Binance is in Ontario and if they can resume trading on Binance? The short answer is no; Binance does not currently hold a license with the OSC, which regulates cryptocurrency exchanges in Ontario. In the wake of mixed reports regarding its eligibility as a licensed cryptocurrency exchange in Ontario, we will take a look at the status of Binance as well as offer some possible alternatives for cryptocurrency trading in Ontario.

Binance vs the Ontario Securities Commission (OSC)

Unlike in the United States, where there is a federal securities regulator, there is no such a thing in Canada, where securities regulations are enforced by provincial securities commissions. As a result, regulations differ from province to province, and Ontario was the first province in Canada to come up with a regulatory framework for crypto exchanges. As a result, crypto exchanges must get regulatory approval from the OSC in order to operate in the province of Ontario.

In June of 2021, the OSC threatened regulatory sanctions on Binance for operating within the jurisdiction of Ontario as an unlicensed exchange, and as a result, Binance announced that all Ontarians had to clear their accounts by the end of 2021.

Then, a few days before the deadline, Binance announced to its Ontarian customers that they could keep trading on the platform. Their argument was that they started the registration process with the OSC and that their clients from Ontario could keep trading on its platform while Binance was in talks with the OSC. Following this communication, the Financial Post published an article summarizing the situation titled Binance to continue Ontario operations after working with regulators.

However, the OSC fired back with a press release that said that Binance’s statement was problematic, because the exchange was still not registered in Ontario and it couldn’t legally allow Ontarians to trade cryptocurrencies. On the same day, Binance reacted to the OSC’s press release with a press release of their own, in which they, once again, changed their position.

In their presse release, Binance stated that they indeed did not get approval from the OSC to allow Ontarians to keep trading, but repeated their claims that they were pursuing the registration process with the OSC. They also stated there would be “no change to the restrictions that Binance put into place earlier this year for Ontario”. Those restrictions are that Ontarians are no longer able to trade on Binance and that Ontarians can’t open new accounts on the platform until Binance is registered.

As of today, the OSC has still not granted a license to Binance, which is still off limits for Ontarians. However, there are plenty of other cryptocurrency trading options for Ontario residents on exchanges that have been approved by the OSC, including the 5 alternatives we provide here.

5 Binance Alternatives in Ontario

If you are looking to enjoy the opportunities of cryptocurrency trading on an exchange in Ontario, there are still plenty of other options, including the five options listed here. These exchanges are regulated by the Ontario Securities Commission, and registration is free at these sites. Known as “restricted dealers”, these exchanges can operate freely with the selling of cryptocurrencies. Here are the 5 Ontario regulated exchanges so far:

Bitbuy

This Canadian cryptocurrency exchange is listed by the OSC as having a Restricted Dealer license for Ontario and operates within the Ontario jurisdiction with a dealer and marketplace option. At Bitbuy, you can buy a variety of cryptocurrencies using a simple and secure trading interface.

Coinberry

Coinberry is an insured cryptocurrency exchange that has made compliance in Canada a top priority. Approved and licensed by the OSC, as well as having FINTRAC and PIPEDA approval, traders can have peace of mind knowing their funds are safe and secure when trading at Coinberry. Offering a wide variety of cryptocurrencies, investors can build their portfolio from the comfort of home using this digital trading service.

Coinsmart

Coinsmart has received their license from the OSC as a restricted dealer, authorizing them to sell cryptocurrencies in Ontario. Being publicly traded on the NEO exchange under the ticker SMRT, investors can also buy shares in the exchange through an online brokerage account. This has been done by other exchanges in the form of tokens, but in this case, the ownership of shares is done through a regulated exchange called NEO. Offering more than just Bitcoin and Ethereum, traders can buy more than a dozen different currencies on Coinsmart.

Netcoins

Netcoins is another cryptocurrency exchange that is approved and licensed by the OSC. Claiming to be publicly owned, and offering a wide variety of cryptocurrencies, users can fund their account without any fees. Offering a minimum investment of $10 and max of $10 million, the sky's the limit for investing on the Netcoins exchange platform. Netcoins offers live support and tutorials for new traders as well on their cryptocurrency exchange.

Wealthsimple Crypto

Wealthsimple is a diversified portfolio management and investment company that is authorized to sell cryptocurrencies in Ontario under the Restricted Dealer license. Offering more than just cryptocurrencies, they provide investment management services, tax advice, and much more. The fintech company offers crypto trading through its Wealthsimple Trade app. Claiming to be Canada’s first regulated cryptocurrency exchange, and offering deposit protection, investor’s can begin with as little as $1 to get started. While the number of crypto coins offered is not as vast as some of the other exchanges, Bitcoin, Ethereum, Doge, and others are available.