Binance, the world's largest cryptocurrency exchange, is facing a new class-action lawsuit in Canada.
This is over allegations that it violated securities laws by allowing retail investors to trade crypto derivatives products without proper registration.
A certification motion for the class-action suit was published on April 19th by the Ontario Superior Court of Justice.
Accordingly, the plaintiffs, represented by lawyers Christopher Lochan and Jeremy Leeder, claim that Binance sold crypto derivative products to retail investors in violation of the Ontario Securities Act and federal laws.
In line with this, the lawsuit seeks damages and rescission of any unlawful derivatives trades made on the Binance platform. It alleges that thousands of Canadian users invested in Binance's cryptocurrency derivatives products, which include futures and options contracts.
Binance is a crypto exchange giant, accounting for more than half of total spot trading volumes among centralized exchanges as of this year.
While its spot trading platform is massively popular, Binance also operates the biggest crypto derivatives market, outpacing competitors like Bybit and OKX.
In May 2023, the exchange announced its departure from Canada amid the increased regulatory pressure. However, Canadian authorities have continued to pursue Binance, with the Ontario Securities Commission noting that the investigation into the defendants is ongoing.
This lawsuit adds to Binance's legal troubles around the globe. In Nigeria, a court is scheduled to hear charges of illegal activities and tax evasion against the exchange and two of its executives, as reported by Traders Union.
Despite the scrutiny, Binance continues to make regulatory headway in some jurisdictions. The exchange recently attained a full Virtual Asset Service Provider license from Dubai's Virtual Asset Regulatory Authority, over a year after entering this multi-stage licensing process.
As the crypto industry matures, clashes between major platforms like Binance and regulatory bodies are becoming increasingly common.