According to a document filed with the Capital Markets Court, the Securities Commission of Ontario, Canada, issued an investigative order against Binance last month, and Binance will be investigated to determine if it is intentionally circumventing securities laws.
According to the petition, the OSC’s submission requested a particularly extensive examination of whether the exchange may have attempted to evade Ontario securities laws and compliance procedures related to Binance.com or engaged in conduct contrary to Ontario securities laws or the public interest.
A few days later, Binance announced it was leaving the country due to “new guidance regarding stablecoins and investor restrictions.” When asked why it chose to leave the Canadian market, its CEO Changpeng Zhao (CZ), a Canadian citizen, said in a Twitter post that he no longer thinks running a company has interest there is possible due to the new regulations.
Binance subsequently asked the Ontario Securities Commission to drop its investigation, arguing that it was “extremely broad” and “not based on any factual facts.” Binance added in its May 18 filing that the “investigation order has no legitimate purpose” and that the exchange has withdrawn from Ontario and Canada.
According to Capital Markets Court filings, a hearing on whether to drop the investigation is set for June 2.
Binance isn’t the only crypto company that finds Canada a difficult place to do business. After, digital asset exchange Bybit said it was leaving the country, and OKX in March announced their withdrawal, citing the inability to withstand the new regulations.
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