OSC ordered to pay Binance $15k after ‘unreasonable’ probe request

**Canadian Court of Appeal Rules in Favor of Binance, OSC Document Request Deemed Unconstitutional**

A Canadian Court of Appeal has ruled in favor of Binance in a landmark case involving the Ontario Securities Commission’s (OSC) document production request, which the court declared ‘unconstitutional.’

According to official court documents, the Court of Appeal of Ontario found that the OSC overstepped its authority by ordering Binance to hand over a large volume of internal communication documents as part of an ongoing investigation. The court deemed the commission’s summons too broad, violating protection under Canada’s Charter of Rights and Freedoms.

As a result of the decision, the OSC has been ordered to return all seized documents to Binance (BNB) and pay $15,000 to the crypto exchange to cover the cost of the appeal.

### Case Background

In 2024, regulators began investigating Binance’s operations to determine whether the crypto exchange had broken securities laws by offering trading services to Ontarians. During the probe, the Commission requested Binance present documents involving “all communications regarding Ontario or Canada” dating back to January 2021.

Binance challenged the order, arguing it was “so overbroad as to be unconstitutional.” Binance lawyers noted that the request would require producing years’ worth of emails and internal discussions, far exceeding what was necessary for a focused investigation.

### Court Findings

Ultimately, the Court of Appeal sided with Binance. The panel concluded that the OSC’s request violated the Charter of Rights and Freedoms with regard to regulatory investigations, explaining that Binance still retains a right to privacy over its communications.

The judges agreed that the Commission’s demand was “overbroad,” comparing it to a fishing expedition rather than a legitimate, targeted inquiry. By requesting all communications over a multi-year period, the OSC failed to narrow its scope to documents reasonably relevant to its specific investigation.

Consequently, the court ruled the summons unconstitutional and instructed the OSC to return any documents obtained through it.

Importantly, the ruling does not prevent the OSC from continuing its investigation into Binance. The agency may proceed if it issues a more reasonable and targeted summons that meets constitutional requirements.

### OSC’s Track Record with Crypto Firms

The Ontario Securities Commission has a history of legal actions against non-compliant crypto firms operating both inside and outside its jurisdiction.

In 2022, the OSC took action against crypto exchange Bybit for conducting business in Ontario without a license, in violation of securities laws. This case ended with Bybit paying CAD 2.5 million in penalties and withdrawing from the Canadian market. Bybit’s exit was soon followed by KuCoin, which was also fined for operating in Ontario without proper registration.

—

*Stay updated with the latest developments in cryptocurrency regulations and legal actions in Canada. Subscribe for more insights and news.*
https://crypto.news/osc-ordered-to-pay-binance-15k-after-unreasonable-probe-request/

You may also like

Want to photograph the northern lights tonight? Here’s how to plan your trip and the best settings to use

2025 年 11 月 12 日

Self-Described Communist, Anti-Israel Cornell Student Elected to Ithaca Common Council

2025 年 11 月 12 日

Humane Society’s Pet Pantry running low amid growing need

2025 年 11 月 12 日