Crypto platform Binance Holdings Ltd. has been granted a motion allowing a pair of appeals in its ongoing litigation with the Ontario Securities Commission (OSC) to be heard together. The development will enable the courts to rule on who can review, and quash, an investigative summons issued by the regulator.
The Court of Appeal for Ontario agreed to let Binance join a pair of cases, both of which aim to challenge the constitutionality of a summons issued by an OSC investigator. The cases are Binance’s appeal to the Divisional Court of an OSC decision and an appeal to the Appeal Court of a separate Divisional Court ruling.
According to the court’s decision, the company sought to join the cases, arguing they are part of the “same proceeding” and that combining them would facilitate the administration of justice.
The OSC argued against the motion, maintaining that the issues to be considered in the appeals are distinct, among other objections.
The appeals stem from Binance’s opposition to an OSC investigation order issued in May 2023.
At the time, the firm applied to the Capital Markets Tribunal to have the order revoked, but the tribunal declined, ruling it didn’t have the authority to revoke an investigation order.
Binance then sought a review of the order and the summons by the Divisional Court, arguing that the investigative summons breached the Charter provision against unreasonable search and seizure.
The court dismissed that application, and Binance is seeking to appeal that ruling.
The Appeal Court granted leave to the firm to appeal the Divisional Court decision, saying that the “proposed appeal raised issues of statutory interpretation regarding which decision maker has jurisdiction to review and quash or vary a summons issued under … the Securities Act, an arguable issue of law that goes beyond the interests of the immediate parties and is of general public importance.”
Separately, Binance brought an application to the OSC under a different section of the Securities Act, seeking to quash the summons.
However, that effort was also rejected on jurisdictional grounds. Binance sought a judicial review of that ruling, which was scheduled to be heard on Nov. 25.
Now, the Court of Appeal has ruled that both appeals can be heard together.
“I agree with Binance that combining the appeals will permit this court to fully and finally resolve which body has original jurisdiction to review and quash a summons issued by an investigator … the issue raised in both appeals,” it said.
“Combining appeals secures the just, most expeditious and least expensive determination of the issues in the appeals on their merits,” it said.