Binance Faces Class Action Lawsuit In Canada

Binance is making headlines again on the legal front. The crypto exchange faces a class action lawsuit, with plaintiffs alleging that it violated the Ontario Securities Act and federal law.

Jeremy Leeder and Christopher Lochan represent the plaintiffs, who claim Binance sold crypto derivatives products without proper registration. The Ontario Superior Court of Justice published a certification motion for the class-action lawsuit, which seeks damages and the rescission of “unlawful trades.”

The Crackdown Continues

The lawsuit highlights that “many retail investors” were affected by the sale of unregistered derivative products. The Ontario Securities Commission (OSC) reports that over half of Canadian crypto asset owners have at least $5,000 worth of cryptocurrencies.

Binance announced a cease-operation in Ontario in 2021, followed by departure plans in early 2023. Despite its retreat, Canadian authorities have continued to crack down on the exchange. 

Most notably, in 2022, Binance made headlines as the OSC threatened the exchange with a cease trade order. “As a result of its failure to adhere to this announced cessation of sales, in early 2022, the OSC notified the defendants of its intention to seek a cease trade order,” the court document reads.

Binance’s Long List of Regulatory Challenges

On a similar note, the Philippines’ Security and Exchange Commission continues to crack down on Binance as well. The regulatory agency ordered Apple and Google to remove the Binance app from their platforms following the agency’s decision to restrict Binance’s access to the country.

Despite regulatory challenges, Binance remains the largest cryptocurrency for spot and derivatives trading, accounting for over 58% of spot trading volume alone. However, Binance’s dominance on Bitcoin and altcoins seems to be waning.

As CryptoMode reported, data from research firm Kaiko shows a decrease in the percentage of BTC trading, which has dropped from 81.3% to 55.3% and 58% to 50.5% for altcoins.