Binance has become the latest cryptocurrency exchange to close down its operations in Canada. The exchange said , in a Tweet on Friday that Canada’s requirements around ‘stablecoins and investor limits’ pushed it out of the country.
Binance Is No Longer Operating in Canada
“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,” Binance stated.
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
Last December, the Canadian Securities Administrators (CSA) issued a notice labeling stablecoins as ‘securities and/or derivatives.’ This has prohibited regulated crypto exchanges in the country from offering services with stablecoins, which is a significant part of the industry.
Further, Canada, especially the regulator in the state of Ontario, mandated the registration of all cryptocurrency exchanges operating within the country.
Harsh Canadian Regulations
Binance, the largest cryptocurrency exchange in trading volume, is not the first to exit Canada. Big names like Paxos and OKX have already announced their decision to shutter their services for Canadians.
However, several exchanges are cementing their positions in the Canadian markets. Gemini, Coinbase, and Kraken were among the top crypto exchanges to file for Canadian registration.
On top of that, Binance highlighted that Canada is a small market. Still, it had ‘sentimental value’ for the exchange giant as its CEO, Changpeng Zhao, is a Canadian national, despite his Chinese descent.
“While we do not agree with the new guidance, we hope to continue to engage with Canadian regulators aimed at a thoughtful, comprehensive regulatory framework,” Binance added. “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.”
Furthermore, Binance is facing regulatory backlash in the United States. The US Commodity Futures Trading Commission also filed a legal complaint against the exchange and its CEO for violating an array of local regulations. Moreover, the Securities and Commission Exchange’s actions against rival Coinbase have made the future of the other exchanges skeptical in the country.
Binance’s Chief Strategy Officer, Patrick Hillmann, recently revealed that the exchange is now considering seeking regulatory permission in the United Kingdom. Interestingly, Binance withdrew its application for a Financial Conduct Authority (FCA) registration earlier.
This article was written by Arnab Shome at www.financemagnates.com.
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