Binance pulls out of Canada amid tightening crypto regulations
“Unfortunately, today we are announcing that Binance will be joining other prominent crypto businesses in proactively withdrawing from the Canadian marketplace.”
Binance, the world’s largest crypto exchange announced on Friday that it will be exiting Canada, following the release of new guidelines by the country’s regulatory authorities for cryptocurrency exchanges. The regulations include restrictions on investors and mandatory registrations, among other requirements.
“Unfortunately, (the) new guidance related to stablecoins and investor limits provided to crypto exchanges makes the Canada market no longer tenable for Binance at this time,” Binance said in a tweet.
“We had high hopes for the rest of the Canadian blockchain industry. Unfortunately, new guidance related to stablecoins and investor limits provided to crypto exchanges makes the Canada market no longer tenable for Binance at this time. We put off this decision as long as we could to explore other reasonable avenues to protect our Canadian users, but it has become apparent that there are none.”
Unfortunately, today we are announcing that Binance will be joining other prominent crypto businesses in proactively withdrawing from the Canadian marketplace.
We would like to thank those regulators who worked with us collaboratively to address the needs of Canadian users.…
— Binance (@binance) May 12, 2023
In recent months, Canada has tightened regulations for crypto asset trading platforms with the introduction of a pre-registration process. The companies that do not adhere to the rules will face potential enforcement action, according to the website of the Ontario Securities Commission.
However, Binance said it disagreed with the latest guidelines and stated its intention to engage with Canadian regulators to develop a more comprehensive framework for crypto operations in the country.
“We are confident that we will someday return to the market when Canadian users once again have the freedom to access a broader suite of digital assets,” the company said.
Meanwhile, Canada is not the only country cracking down on crypto companies. Early this week, Crypto exchange Bittrex filed for bankruptcy protection following allegations from the U.S. Securities and Exchange Commission (SEC) that it operated an unregistered securities exchange.
Founded in 2017 by Changpeng Zhao and Yi He, the Cayman Islands-based Binance is the world’s leading blockchain ecosystem and cryptocurrency infrastructure provider with a financial product suite that includes the largest digital asset exchange by volume. It provides a platform for trading various cryptocurrencies. Binance also provides access to exchange digital currency pairs on the market while maintaining security, and liquidity, enabling a safe and efficient deal with anyone, anytime and anywhere.