Ontario Court Approves Lawsuit Against Binance

In simpler terms, Ontario’s Superior Court has given the green light to a lawsuit against Binance, a well-known cryptocurrency exchange, over claims that it provided derivatives in crypto to regular investors without proper registration. This allegedly went against securities regulations. The suit aims for compensation and annulment of these transactions, as well as penalties for Binance’s failure to register and file a prospectus.

The court determined that crypto contracts on Binance were classified as securities or derivatives based on legal guidelines. This decision was made after recognizing that advertising for these contracts could be equated to selling them. Binance attempted to argue that they merely acted as an intermediary in trades and the investors were involved. However, the court did not agree with this perspective, instead focusing on the fact that the contracts were entered into between the Binance platform and the individual investors.

Binance has had previous regulatory issues in Ontario, Canada. Despite earlier plans to exclude Canadian users by June 2021, the platform was kept open for them instead. The Ontario Securities Commission is currently looking into potential violations by Binance, but no charges have been filed yet.

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2024-04-23 04:04