Crypto platform Bitfinex plans departure from Ontario, tells users to withdraw funds

Departure comes after Binance made a similar move to leave Ontario following a crypto crackdown in June 2021

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Cryptocurrency exchange Bitfinex will no longer offer services in Ontario as of March 1, telling users on Friday to close out their accounts and withdraw their funds by that time.

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In their announcement, they told users they would take some immediate actions, such as closing accounts for Ontario users who do not have any balances on the platform, and Ontario users will no longer have access to peer-to-peer financing markets. No reason was given for the planned departure.

Bitfinex was founded in Hong Kong by its operator iFinex, Inc. in 2012 and it is registered in the British Virgin Islands.

This departure comes after cryptocurrency exchange Binance made a similar move to leave the province following a crypto crack down in June 2021. The exchange clashed with the Ontario Securities Commission (OSC) when the company told Ontario users that they would no longer need to close out their accounts by the end of the year. The OSC shot back saying that the company remained unregistered and its actions were ‘unacceptable’. Binance stated that the situation was a misunderstanding and that it plans to work with regulators.

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Bitfinex and Binance are not the only exchanges that had moved on from Ontario, other exchanges like Poloniex, Bitmex, and KuCoin had been issued notices by the OSC over the past two year for failing to comply with regulations and had urged Ontario residents to close their accounts.

In Ontario, crypto exchanges need to hold their assets under a qualified custodian, which is licensed as a depositing institution. Platforms also are not permitted to offer crypto assets as a security or derivative (allowing users to, for example, trade on margin), which would force exchanges like Bitfinex and Binance to cut these services from their business model.

More international exchanges have been placing restrictions on Canadian users following the country’s crackdown on cryptocurrencies, according to reporting from The Logic.

There are currently six crypto exchanges that are registered within the province, including Wealthsimple, Fidelity, Netcoins, Coinsmart, Coinberry, and Bitbuy.

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