Is Binance Legal in Canada or is it Still Banned in 2022?

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by Enoch Omololu

Updated

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If you are here because you’d like to know whether Binance is legal in Canada or is still banned in 2022, we have got you covered.

This article covers the suspension of Binance services in Ontario and the best crypto exchange alternatives you can use.

You will also learn about all the places where Binance is banned or limited in one form or the other.

Update: Binance recently received a license to operate in Canada as a Money Service Business under the BINANCE CANADA CAPITAL MARKETS INC. legal name. This entity was registered on December 24, 2021, and will be involved in foreign exchange dealing, money transferring, and dealing in virtual currencies. That said, its services are still suspended in Ontario.

Is Binance Legal in Canada?

Binance suspended its operations in Ontario to avoid regulatory scrutiny from the OSC.

Earlier in 2021, the Ontario Securities Commission took action against cryptocurrency exchanges operating in the province that were not in compliance with its Securities Act.

These crypto exchanges included Bybit, Poloniex, and KuCoin, after they failed to meet an April 19, 2021, deadline set by the regulator.

Soon after the OSC published Statements of Allegations against Bybit, Poloniex, and Kucoin, Binance published the following on its website:

As part of our continuing compliance efforts, Binance has updated its Terms of Use to provide that Ontario (Canada) has become a restricted jurisdiction, effective 2021-06-26 at 3:59:59 AM (UTC). Regrettably, Binance can no longer continue to service Ontario-based users.

In addition to not being able to trade, if you are a Binance customer who resides in Ontario, you are required to withdraw your funds by December 31, 2021.

So, if Binance is still banned in Ontario, is it available and legal elsewhere?

As of this writing, there are no obvious restrictions to using Binance in other Canadian provinces and territories.

Whether that changes in the future is anyone’s guess.

Binance Alternatives in Canada

There are several crypto trading apps you can use in Ontario and the rest of Canada if you want to avoid the risks of Binance getting banned.

They include:

1. CoinSmart

This top-tier Canadian trading platform supports 16 popular coins and charges competitive low trading fees.

CoinSmart operates in several countries and is one of a few crypto companies that are publicly traded.

Coins offered: Bitcoin, Litecoin, Ethereum, Uniswap, Chainlink, Polkadot, Dogecoin, Shiba Inu, Bitcoin Cash, EOS, Stellar, USDC, Cardano, Avalanche, Solana, and more.

Trading fee: 0.20%.

Funding options: Interac e-Transfer, bank wire, bank draft, credit card, and debit card.

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2. Newton

Newton is a crypto brokerage service that supports several coins. It is a good Binance alternative for beginners.

Coins offered: Terra, USD Coin, Tether, Yearn Finance, Maker DAO, PAX Gold, Enjin Coin, Zcash, Ren, Fantom, Hedera, Loopring, Chromia, and several others.

Trading fees: Up to 0.70%.

Funding options: Interac e-Transfer, bank wire, and crypto deposits.

Promo offer: Get a $25 bonus when you trade at least $100 worth of crypto.

3. Wealthsimple Crypto

New crypto traders who want a crypto trading platform for beginners can consider Wealthsimple Crypto.

The regulated cryptocurrency site supports 30+ coins and you can use the same app (Trade) to invest in stocks.

Coins offered: Bitcoin, Avalanche, Chainlink, Compound, Cosmos, Curve, Polkadot, Polygon, Ren, Shiba Inu, Solana, Stella, Synthetic, SushiSwap, and several others.

Trading fee: Up to 2%

Funding options: Electronic Funds Transfers. You can also deposit BTC and ETH from external wallets.

Promo offer: Get a cash bonus when you trade $150 worth of crypto in your new account within 30 days of opening it.

4. Bitbuy

Bitbuy is a great Binance alternative if you are looking for a live order book and deep liquidity. As per its website, it has been used to facilitate more than $4 billion worth of crypto transactions.

Coins offered: Bitcoin, Ethereum, Litecoin, EOS, Stellar Lumens, Bitcoin Cash, Chainlink, AAVE, and 7 others.

Trading fee: 0.10% to 0.20%

Funding options: Interac e-Transfer, bank wire, and crypto deposits.

Promotion: Get a $20 bonus when you make a one-time initial deposit of $250 or more.

5. NDAX

NDAX is a full-fledged cryptocurrency exchange with support for 30+ coins.

It has one of the lowest fee schedules for trading crypto as well as depositing and withdrawing funds.

Coins offered: Bitcoin, Polkadot, The Graph, Uniswap, Compound, Polygon, USDC, Fantom, USDT, Dogecoin, Aave, Cardano, and several others.

Trading fee: 0.20%

Funding options: Interac e-Transfer, wire transfer, and bank draft; crypto deposits.

Promo offer: Get a $10 bonus when you deposit $100 in your new account.

What is Binance?

Binance is the “world’s leading cryptocurrency exchange” with more than $2 billion in daily transactions.

It offers more than 350 coins and tokens for spot trading as well as derivatives (options and futures).

The platform also has its own native cryptocurrency, Binance Coin, which is currently ranked #3 by market capitalization.

Learn more about how it works in this Binance review.

Is Binance Safe?

Binance uses encryption and 2-factor authentication to secure your account.

It also advises users to:

  • Enable anti-phishing code
  • Get an update antivirus software
  • Use a VPN when using untrusted internet connections e.g. Wi-Fi
  • Use an incognito browser without browser plugins and extensions.

Like every other investment account, you must take additional precautions to keep your Binance account safe.

If you have a significant crypto balance, consider moving them to a secure hardware wallet.

Where is Binance Banned?

Binance is banned or restricted (or has been issued warnings) in the following jurisdictions:

Ontario: Binance banned Ontario residents from using the platform in the summer of 2021.

United Kingdom: The UK’s Financial Conduct Authority (FCA) noted that Binance Markets limited was not permitted to offer regulated business in the UK in June 2021.

Japan: The Financial Services Agency (FSA) warned in June that Binance was not registered to offer crypto services in Japan.

United States: Binance.com is banned in the U.S. where it is facing various investigations. That said, Binance.US, a separate entity is available in the United States. Learn more in this Binance.US review.

Thailand: The country’s Securities and Exchange Commission recently filed a complaint against Binance.

Malaysia: It was ordered to stop operating in Malaysia by its Securities Commission in August 2021.

Italy: The Commissione Nazionale per le Societa e la Borsa (CONSOB) banned Italians from using Binance last summer.

China: No cryptocurrency trading platforms are allowed to legally operate in China.

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Author

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Enoch Omololu

Enoch Omololu is a personal finance expert and a veterinarian. He has a master’s degree in Finance and Investment Management from the University of Aberdeen Business School (Scotland) and has completed several courses and certificates in finance, including the Canadian Securities Course. He also has an MSc. in Agricultural Economics from the University of Manitoba and a Doctor of Veterinary Medicine degree from the University of Ibadan. Enoch has a passion for helping others win with their personal finances and has been writing about money matters for over a decade. He has been featured or quoted in The Globe and Mail, Winnipeg Free Press, Wealthsimple, Financial Post, Toronto Star, CTV News, Canadian Securities Exchange, Credit Canada, National Post, CIBC, and many other personal finance publications.

His top investment tools include Wealthsimple and Questrade. He earns cash back on purchases using KOHO, monitors his credit score for free using Borrowell, and earns interest on savings through EQ Bank.

8 thoughts on “Is Binance Legal in Canada or is it Still Banned in 2022?”

  1. Looks like binance got approved in Canada today. Does this mean it’s safe for ontario users?

    • @Edward: There’s no news yet on how their registration affects Ontario users re. the December 31st timeline. Will have to wait and see it seems.

  2. Well time is ticking for people in Ontario. If anyone can please guide me as yo how I even change from Binance would be greatly appreciated. I hope I do not have to cash out.

  3. I have been assured by Binance customer support that you will not need to close your Account if from Ontario. If Ontario is not respecting the granting of a federal money service business then I think we’ve got some real rogue operators at the OSC. Last time I checked Ontario was part of Canada

  4. Hope you can provide some guidance. I just tried to transfer some BTC from Binance and found your article. I live in Ontario Canada and was unaware of the December 31, 2021 deadline. Can you tell me how I can get either my funds out of Binance. I am sure the company can’t just keep them. Thanks.

    • @Jim: I would suggest contacting their customer support. There should be a system in place for you to retrieve your crypto assets.

  5. Just wondering if Binance is still opening accounts for people in other provinces of Canada. I just created my account, but haven’t been able to verify my account. A message saying my postal address isn’t recognized keeps popping up.

    • @Lylo: As far as I know, it is still available in other provinces. Have you tried submitting a ticket?

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