Binance Faces a Lawsuit in Canada

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A group of investors has filed a class action lawsuit against Binance in Canada, claiming that the cryptocurrency exchange violated local securities laws.

The plaintiffs allege that Binance sold cryptocurrency derivatives to retail users without proper registration. They are seeking damages from the exchange and a halt to the allegedly illegal transactions.

According to the lawsuit, the majority of these derivatives traders were classified as retail clients, with more than half of them having balances of less than 5,000 Canadian dollars (~$3,650).

The Ontario Securities Commission (OSC) had previously ordered Binance to cease operations in the Canadian province in March 2022, and on May 10, 2023 the regulator began an investigation into the exchange for potentially circumventing legal requirements in the market.