The Superior Court of Justice of Ontario has accepted an action lawsuit against Binance, one of the biggest cryptocurrencycurrency markets, for allegedly marketing cryptocurrencycurrency derivatives to retail investors without registration, in violation of securities regulations.
The court accepted cryptocurrency contracts as either securities or derivatives under the legislation. It shown that cryptocurrency contract adverts can be classified as selling. Binance favored the notion that it only enabled trading and investors.
The case demands damages and the annulment of these transactions, as well as Binance’s failure to comply with required registrations and prospectus filings.
However, the court rejected this, emphasizing that these contracts are made between class members and Binance itself.
Binance had previously been involved in regulatory disputes with courts in Ontario; nonetheless, Ontario authorities ruled that its platform was made available to Canadian users.
Binance, which promised to exclude Canadian investment by June 2021, reversed its decision. The Ontario Securities Commission has investigated Binance for potential violations but has not yet charged them.
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