Binance, the world-renowned cryptocurrency exchange, is under legal fire in Canada as it faces a class-action lawsuit for purported violations of securities laws.

The Ontario Superior Court of Justice has initiated a certification motion for a class-action lawsuit against Binance, alleging that the exchange unlawfully sold crypto derivative products to retail investors without proper registration.

Represented by Christopher Lochan and Jeremy Leeder, the plaintiffs contend that Binance's actions contravened the Ontario Securities Act and federal regulations, seeking damages and rescission of illegal derivatives trades. It's claimed that tens of thousands of Canadian users invested in Binance's cryptocurrency derivatives products.

The lawsuit underscores the significant retail investor presence in cryptocurrency derivatives trading, with over half of Canadian crypto owners having substantial investments in the market, according to the Ontario Securities Commission.

Despite announcing its departure from Canada in May 2023, Binance has remained under scrutiny by local authorities. The Ontario Securities Commission's ongoing investigation into the exchange suggests that the legal battle is far from over, even after Binance's initial decision to cease operations in Ontario back in 2021.

Binance's dominance in the global cryptocurrency exchange landscape, particularly in spot trading and derivatives markets, has drawn regulatory attention, highlighting the complexities and challenges facing the cryptocurrency industry as it navigates evolving regulatory landscapes worldwide.