Local authorities have kept looking into the exchange even after Binance declared it was leaving Canada in May 2023.

Plaintiffs in a recent class-action lawsuit in Canada have accused cryptocurrency exchange Binance of breaking Canadian securities rules.

A certification move for a class-action lawsuit against Binance, which claims the company offered cryptocurrency derivative products to individual investors without registering, was published by Ontario's Superior Court of Justice on April 19.

Plaintiffs Christopher Lochan and Jeremy Leeder are representing claim that Binance offered cryptocurrency derivatives products against federal law and the Ontario Securities Act (OSA).

Damages and the retraction of illegal derivatives dealings are sought in the complaint. Tens of thousands of Canadian users of the Binance website, according to the plaintiffs, invested in its cryptocurrency derivatives products.

“It is noteworthy here that cryptocurrency derivatives traders include a great many retail investors,” the certification motion reads, adding that more than 50% of Canadian's my crypto owners have at least $5,000 in the market, according to the Ontario Securities Commission (OSC).

Binance is a major global cryptocurrency exchange accounting for 58% of the total spot trading volumes among centralized exchanges as of March 2024.

Apart from its leading position as a major spot crypto trading venue, Binance also operates the biggest derivatives market among other exchanges like Bybit and OKX.

According to data from Bybit, the derivatives market for centralized exchanges (CEXs) is “almost entirely dominated” by Binance, OKX and Bybit.

The latest class action against Binance comes a few years after the crypto exchange announced in June 2021 plans to cease operations in Ontario after the OSC approached the firm with a warning.

“As a result of its failure to adhere to this announced cessation of sales, in early 2022, the OSC notified the defendants of its intention to seek a cease trade order,” the new court document reads.

Even after Binance announced departure from Canada in May 2023, local authorities have continued to crack down on the exchange. “The OSC’s investigation into the defendants is ongoing,” the court motion reads.

Cointelegraph approached Binance for a comment regarding the class action lawsuit in Ontario but did not receive a response at the time of publication.

Data from Bybit indicates that Binance, OKX, and Bybit "almost entirely dominate" the derivatives market for centralised exchanges (CEXs).

The most recent class action lawsuit against Binance was filed a couple years after the cryptocurrency exchange declared in June 2021 that it would be shutting down its business in Ontario as a result of an OSC warning to the company.

According to the updated court filing, "the OSC notified the defendants of its intention to seek a cease trade order in early 2022 as a result of its failure to adhere to this announced cessation of sales."

Local authorities have not let up on their crackdown on Binance, even after the exchange declared its intention to leave Canada in May 2023. The court filing states, "The OSC's investigation into the defendants is ongoing."

Binance was contacted by Cointelegraph for a comment regarding the class action lawsuit in Ontario but did not receive a response at the time of publication