Is Binance Still Banned in Ontario as of 2023?

Is Binance banned in Ontario? Many Ontarians were left wondering about the fate of the iconic crypto platform and if they could resume trading on Binance anytime soon. The short answer is no.

Not only does Binance not hold a license with the Ontario Securities Commission (OSC), which regulates cryptocurrency exchanges in Ontario, but the platform recently announced its plan to exit the Canadian market altogether. 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 leading up to its exodus as well as offer some alternative cryptocurrency trading platforms available 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 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 Ontario 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 press 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.

At the time of writing, the OSC has still not granted a license to Binance, which continues to be off-limits for Ontario users. Then, on May 12th of 2023, Binance rocked the Canadian crypto community with a Twitter announcement:

Citing unfavorable regulations regarding investor limits and stablecoins, the world’s largest crypto trading platform will soon be unavailable to all Canadian users across the country. However, there are plenty of other options for Ontario residents and Canadians in general. Many of the top crypto exchanges in Canada have already been approved by the OSC, including these 5 Binance alternatives we provide here.

4 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 opening an account is free. Known as “restricted dealers”, these exchanges can operate freely with the selling of cryptocurrencies. Here are 5 Ontario regulated exchanges so far:

1. Bitbuy

Bitbuy is a 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, access advanced trading features, and stake certain coins to earn crypto rewards.

2. Wealthsimple Trade

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, investors 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.

3. 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.

4. VirgoCX

VirgoCX is an insured cryptocurrency exchange that has made compliance in Canada a top priority. Approved and licensed by the OSC, as well as a FINTRAC registered Money Service Business (MSB), traders can have peace of mind knowing their funds are safe and secure when trading on VirgoCX. Offering the most popular and well-established cryptocurrencies, you can build your portfolio from the comfort of home using this digital trading service.