The Canadian Court of Appeal ruled that the Ontario Securities Commission's request for document production from Binance was "overly broad" and unconstitutional

The Ontario Court of Appeal ruled in the case of "Binance Holdings Limited v. Ontario Securities Commission (OSC)" to revoke the OSC's previous large-scale document request against Binance, stating that its "scope is shocking" and violates Section 8 of the Canadian Charter of Rights and Freedoms regarding "protection against unreasonable search and seizure."

The court noted that although capital market participants have a lower expectation of privacy in regulated activities, they are still protected by the Charter. The OSC had previously requested Binance to submit "all internal and related party communication records involving Canada for a period of two and a half years," which the court found exceeded reasonable regulatory purposes. The ruling emphasized that regulatory investigations may proceed without evidence of wrongdoing, but must still be limited to "categories of documents reasonably related to the investigation's purpose," or they may be dismissed by the court.

Additionally, the court commented on Binance's use of encrypted communication tools like Signal that feature "self-destructing messages," stating that the mere use of such technology is insufficient to infer an intent to "evade regulation," providing important clarification for financial institutions using privacy communication software. This ruling is seen as establishing the boundaries of Canadian securities regulatory authority and reminding companies that they can assert the privacy and due process rights granted by the Charter when faced with cross-border or overly broad investigation requests.