Is Binance legal in Canada? It’s a question that has been on the minds of crypto enthusiasts and investors alike. If you’re reading this, chances are you’re looking for answers, and I’m here to provide them.
Binance is a cryptocurrency exchange that was made for crypto investors all around the world, especially those with skin in the game. They are known for their low trading fees and a broad selection of cryptocurrencies.
The world’s leading cryptocurrency exchange recently took to Twitter to declare its decision to withdraw from the Canadian market. In the tweet, Binance announced, “Unfortunately, today we are announcing that Binance will be joining other prominent crypto businesses in proactively withdrawing from the Canadian marketplace”.
In this article, we’ll delve into the details and shed light on the situation, so you’ll clearly understand what’s happening. We’ll also guide you through alternative crypto exchange options that you can consider in light of Binance’s suspension of services in Ontario.
Let’s get into it.
Is Binance Legal in Canada?
In June 2021, Binance, a leading cryptocurrency exchange, took a significant step in response to the Ontario Securities Commission (OSC) regulatory actions.
This decision led to suspending Binance’s operations in Ontario, aligning with the actions taken against other crypto exchanges like KuCoin, Bybit, and Poloniex by the OSC. These exchanges faced allegations of offering securities and derivatives without proper registration under the OSC’s Securities Act.
As a result, Binance promptly updated its Terms of Use, designating Ontario as a “restricted jurisdiction” effective from June 26, 2021. Consequently, Binance ceased to offer services to users based in Ontario. To ensure compliance, Binance advised its Ontario customers to close out all active positions and withdraw their funds by December 31, 2021.
This regulatory landscape emphasises the importance of adhering to registration and compliance requirements within the cryptocurrency industry. The OSC’s actions aim to safeguard investors from potential risks associated with unregistered platforms. This concern is particularly heightened following past incidents where Canadian exchanges abruptly shut down, resulting in customers losing their funds.
While Binance’s suspension currently impacts Ontario, it’s crucial to recognise that regulations may vary across Canadian provinces and territories. As of the latest update, Binance will no longer be available in other regions by September 30, 2023.
As the cryptocurrency landscape evolves, it is advisable for Ontarians and Canadians at large to explore alternative crypto exchange options that comply with regulatory frameworks, enabling them to continue trading and investing in cryptocurrencies securely.
Top 3 Binance Alternatives in Canada
When it comes to cryptocurrency exchanges in Canada, there are several noteworthy alternatives to Binance. Among the top contenders are Bitbuy, Coinsmart, and Newton.
Each platform has its own distinct strengths and weaknesses, making it crucial to carefully evaluate your options before settling on a crypto exchange.
To assist you in making an informed decision, take a look at the table below highlighting key features and attributes of these platforms:
Features | Bitbuy | Coinsmart | Newton |
Supported coins | 17 coins | 16 coins | 71 coins |
Security | 2FA Cold storage | 2FA Cold storage | 2FA Cold storage |
Fees | 0.1% - 0.2% Trading fees | 0.2% Trading fees | Spread of 0.5% - 0.7% |
Apps | Android and iOS | Android and iOS | Android and iOS |
Regulator | FINTRAC | FINTRAC | FINTRAC |
CDIC Coverage | N/A | N/A | N/A |
Funding Options | Interac e-Transfer, Bank Transfer | Interac e-Transfer, Credit & Debit card, Bank Transfer, Bank draft | Interac e-Transfer, Wire transfers, Pre-authorized bank transfers through Plaid, transfers from external wallets |
Special offers and promotions | $40 bonus when you make a minimum initial deposit of $250 | $30 bonus when you make a minimum initial deposit of $100 | $25 bonus when you make a minimum initial deposit of $100 |
For more information on all the options available and more, check out our article on the best crypto exchanges in Canada.
What Is Binance and How Does It Work?
At its core, Binance is a trading platform designed to facilitate the buying and selling of cryptocurrencies. What sets Binance apart is its extensive selection of over 600 cryptocurrencies, providing users with ample choices to diversify their investment portfolios. Whether you’re interested in Bitcoin, Ethereum, or the latest altcoins, you’ll find them all on Binance.
Aside from trading, Binance offers several other services that enhance the user experience. One notable feature is its NFT marketplace, where users can explore and trade non-fungible tokens representing unique digital assets. Additionally, Binance has its own native token called BNB (Binance Coin), which serves various purposes within the Binance ecosystem, including discounted trading fees.
Binance also operates the Binance Smart Chain, a popular blockchain platform that enables developers to build decentralised applications (DApps) and launch new cryptocurrencies. Furthermore, Binance provides services for staking, allowing users to earn passive income by participating in the network’s consensus mechanism.
Binance offers a peer-to-peer trading desk to cater to different trading preferences, enabling users to buy and sell cryptocurrencies with fellow traders directly. This feature adds a personal touch to the trading experience and fosters a sense of community within the platform.
With its headquarters domiciled in the Cayman Islands, Binance has established itself as a global player in the cryptocurrency space. Its user-friendly interface, low trading fees, extensive coin selection, and innovative services have earned it a reputation as a leading exchange in the industry.
Cryptocurrencies Available on Binance
With 600+ available, these are some of the very best:
If you want to know the best crypto to buy, check out our article. Also, if you’ve ever asked yourself, “what is the next Bitcoin?”, we’ve got you covered.
Binance Fees
At the moment, they do not charge a deposit fee. Also, Binance Canada fees for withdrawal is a flat rate paid by users to cover the costs of transactions incurred from moving the crypto from their Binance.
In general, the fees on Binance are detailed below:
- Trading Fees: 0.02-0.10% per trade
- Debit and Credit Card Fees: 3-4.5%
- Wire Transfer Fee: $15
- Crypto Conversion: Not applicable
- Other Fees: 0.50% for Instant Buy or Sell
Where is Binance Banned?
Binance, one of the world’s largest cryptocurrency exchanges, has faced bans, restrictions, or warnings in several jurisdictions. Here’s a breakdown of where Binance is banned or restricted:
- Ontario: In the summer of 2021, Binance restricted residents of Ontario from using its platform, effectively resulting in a ban in the province.
- United Kingdom: The Financial Conduct Authority (FCA) of the United Kingdom issued a notice in June 2021 stating that Binance Markets Limited was not authorised to provide regulated services in the UK.
- Japan: The Financial Services Agency (FSA) of Japan warned in June 2021 that Binance was not registered to offer cryptocurrency services in the country.
- United States: Binance.com is banned in the United States due to various investigations and regulatory concerns. However, Binance.US, a separate entity, operates within the country and serves US customers.
- Thailand: The Securities and Exchange Commission of Thailand recently filed a complaint against Binance, further complicating its operations in the country.
- Malaysia: Binance was ordered by the Securities Commission of Malaysia to cease its operations in the country in August 2021.
- Italy: Last summer, the Commissione Nazionale per le Societa e la Borsa (CONSOB) banned Italians from using Binance’s services.
- China: Cryptocurrency trading platforms, including Binance, cannot operate legally in China.
Final Thoughts on Is Binance Legal in Canada
The question of “Is Binance legal in Canada?” has been a topic of great interest and concern among crypto enthusiasts like myself. Throughout this article, we have delved into the regulatory landscape surrounding Binance in Canada, exploring the suspension of its operations in Ontario and its impact on users.
While Binance is currently restricted in Ontario and faces certain limitations in other jurisdictions, staying informed about the ever-changing regulatory environment is crucial. As a fellow investor, I understand the importance of compliance and security in the cryptocurrency world.
If you’re based in Ontario or any other region where Binance is affected, I encourage you to explore alternative crypto exchange options that align with regulatory requirements. Additionally, for users in the United States, don’t forget that Binance.US remains available to serve your needs.
Stay informed, stay compliant, and most importantly, continue to responsibly explore the fascinating world of cryptocurrencies. Together, we can navigate the ever-evolving landscape of crypto trading.
FAQs on Is Binance Legal in Canada
Is Binance Legal in Ontario?
No. Binance suspended operations in the province of Ontario to avoid regulatory action from the Ontario Securities Commission (OSC). Consequently, Binance customers who reside in Ontario were advised to withdraw their money from the exchange on or before the 31st of December 2021.
Is Binance Good for Canada?
Yes, for the most part. Binance is a great cryptocurrency exchange with a wide selection of coins. However, it was banned by the Ontario securities commission for failing to adhere to regulations. Therefore, Ontario residents are not advised to conduct business with Binance.
When Will Bitcoin Be Legal in Ontario?
There is no definitive answer to this question. So, Ontarians have to be patient. However, Binance can take some pointers from how it handled being banned in the U.S. by setting up a standalone entity that can serve the residents in Ontario. Binance was banned in 2019 in the US, but Binance.US (a special platform designed for Americans only) operates in 43 states.
Is Binance Good for Beginners?
The Binance platform can be easy to use. However, the complexities of the user experience can be overwhelming for a newbie. Binance works better for people who know the ins and outs of cryptocurrency jargon and investment tools. If you can’t deal with the complexities, you can start with another exchange and move to Binance when you can.
