Global cryptocurrency exchange Binance is currently facing a class-action lawsuit in Canada. Plaintiffs argue that the exchange violated local securities regulations by marketing unregistered crypto derivative products to investors. The lawsuit, filed by Ontario's Superior Court of Justice, seeks damages and the reversal of the said trades.
The case, filed by Canadians Christopher Lochan and Jeremy Leeder, alleges that Binance's acts violate the Ontario Securities Act. They showed a large retail investor presence in Canada's crypto derivatives market, with 50% having invested more than $5,000.
With a dominant share of 58% in centralized exchange spot trading and top ranks in derivatives markets, Binance's influence is notable. Data show Binance, along with OKX and Bybit, nearly monopolizes the derivatives arena.
The legal action comes after Binance suspended operations in Ontario, a decision made in 2021 in response to OSC warnings, and a subsequent commitment to leave Canada in 2023. Despite these assurances, the OSC has launched an investigation, indicating that regulatory pressure on the exchange remains high.
