As Canadian regulators start to crack down on crypto companies, the world’s largest cryptocurrency exchange is also facing a $1 billion class-action lawsuit in Toronto.
Binance is being accused of illegally offering complex trades without providing the necessary disclosures to offer those types of high-risk products to traders, per The Globe and Mail.
Why it matters: It’s not immediately clear what will happen to Binance if the suit makes it to court and the company continues to run into regulatory problems, but the move signals that crypto companies may have more than regulatory crackdowns to worry about these days.
- Binance has clashed with the Ontario Securities Commission (opting to leave the province entirely) and has not complied with new requirements laid out by the Canadian Securities Administrators as it awaits approval for registration.
Zoom out: Binance may be the world’s biggest crypto exchange by trade volume, but it’s future is increasingly unclear as it attracts scrutiny from regulators around the world that are taking a close look at crypto companies. Still, the company insists it’s running “a clean shop.”