Ontario Court of Appeal upholds decision declining to enforce cryptocurrency exchange arbitration agreement as contrary to public policy
Introduction In a recent decision in Lochan v Binance Holdings Limited, the Court of Appeal for Ontario upheld a Superior Court decision declining to stay a proposed class action in favour of arbitration, finding that the arbitration agreement effectively bars claims by imposing prohibitive costs on claimants. The Court further held that these clauses may also be void for being contrary to public policy and unconscionable. Background The defendant, Binance, is the world’s largest cryptocurrency exchange. It sold cryptocurrency derivatives to Canadians from 2019 through 2022 but failed to file a prospectus or register with the Ontario Securities Commission. In ... [more]
The Supreme Court of Canada Provides Guidance on Interpreting Exclusion Clauses
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