What is Binance Coin?

Launched in July 2017, Binance Coin is a utility token that allows users to transact within the Binance ecosystem. The ecosystem was created to unify existing blockchain networks and comprises three blockchains live on the mainnet, i.e., BNB Smart Chain, opBNB, and BNB Greenfield. The staking and governance features of BNB Chain occur on BNB Smart Chain, which adds EVM-compatible smart contract functionality to the ecosystem.

What is BNB?

BNB is the native cryptocurrency of the Binance ecosystem, utilized within both the Binance centralized exchange and its blockchain networks, including BNB Chain. Originally launched as an ERC-20 token on Ethereum in 2017, BNB later migrated to its proprietary chains. Its primary functions include serving as a method for paying transaction fees on Binance platforms, acting as the gas token for transactions on BNB Chain, and facilitating operations within a variety of decentralized applications. BNB has a total supply of 140.88 million BNB, with 140.88 million BNB currently in circulation.

Risk Statement

Before trading any crypto assets it is important to understand the risks. This overview is a starting point for you to perform your own research prior to investing in a crypto asset. 

No securities regulatory authority or regulator in Canada has evaluated or endorsed the Crypto Contracts or any of the crypto assets made available through the platform. 

Wealthsimple has performed an assessment of whether BNB can be supported by Wealthsimple’s platform, including whether BNB is a security and/or a derivative and is being offered in compliance with securities and derivatives laws. 

We evaluated BNB based on publicly available information, including (but not limited to):

• The creation, governance, usage and design of BNB, including the source code, security and roadmap for growth in the developer community and, if applicable, the background of the developer(s) that first created BNB;
• The supply, demand, maturity, utility and liquidity of BNB;
• Material technical risks associated with BNB, including any code defects, security breaches and other threats concerning BNB and its supporting blockchain (such as the susceptibility to hacking and impact of forking), or the practices and protocols that apply to them;
• Legal and regulatory risks associated with BNB, including any pending, potential, or prior civil, regulatory, criminal, or enforcement action relating to the issuance, distribution, or use of BNB; and
• Statements made by regulators or securities regulatory authorities in Canada and other jurisdictions regarding whether BNB, or generally about whether the type of crypto asset, is a security and/or a derivative.

Wealthsimple monitors ongoing developments related to crypto assets available on its platform for significant changes that may affect Wealthsimple’s original assessment of those assets, including Wealthsimple’s assessment of the application of securities and derivatives laws. Any significant changes relating to BNB may result in changes to this Crypto Asset Statement and/or Wealthsimple’s ability to support BNB.

Like all other crypto assets, there are some general risks to investing in BNB. These include short history risk, volatility risk, liquidity risk, demand risk, forking risk, cryptography risk, regulatory risk, concentration risk, electronic trading risk and cyber security risk. Please review the Wealthsimple Crypto Product Risk Disclosure for additional discussion of general risks associated with the crypto assets made available through the platform.

Additional Risks / Information

In June 2023, the U.S. SEC filed a lawsuit against Binance and its CEO, alleging that Binance Coin (BNB) was offered and sold as an unregistered security during its initial coin offering (ICO) and through later direct sales. The SEC also targeted related programs such as BNB Vault and staking services. In July 2024, a U.S. District Court dismissed the SEC’s claims regarding secondary market sales of BNB, finding they did not meet the definition of securities transactions under the Howey Test. However, the court allowed the case to proceed concerning Binance’s own initial and direct sales of BNB. As of April 2025, the case is paused for 60 days to allow further discussions between the SEC and Binance.

On May 29th, 2025, the SEC formally dismissed its civil lawsuit against Binance and its founder, Changpeng Zhao, with prejudice, meaning the case cannot be refiled. The lawsuit, originally filed in June 2023, had alleged that Binance operated as an unregistered exchange, misused customer funds, and misled investors. With this action, there are no remaining SEC lawsuits or major outstanding U.S. legal actions against Binance.

We emphasize that this Crypto Asset Statement is not exhaustive of all risks associated with trading BNB. Investors should perform their own assessment to determine the appropriate level of risk for their personal circumstances.

Wealthsimple is offering Crypto Contracts in reliance on a prospectus exemption contained in the exemptive relief decision Re Wealthsimple Investments Inc. dated December 18, 2023 (the Decision). 

The statutory rights of action for damages and rescission in section 130.1 of the Securities Act (Ontario), and, if applicable, similar statutory rights under securities legislation of other jurisdictions of Canada, do not apply in respect of this Crypto Asset Statement to the extent a Crypto Contract is distributed under the prospectus relief in the Decision.

Last Updated: August 1, 2025