Binance, the world’s largest cryptocurrency exchange, announced on May 12, 2023 that it would be exiting the Canadian market. The company cited new guidance from the Canadian Securities Administrators (CSA) on stablecoins and investor limits as the reason for its decision.
The CSA’s guidance requires cryptocurrency exchanges to obtain a registration certificate from the regulator before offering services to Canadian customers. The guidance also sets limits on the amount of money that investors can deposit into cryptocurrency exchanges.
Binance said that it had explored all options to continue operating in Canada, but that the new regulations made it impossible for the company to do so. The company said that it would be working with its Canadian customers to withdraw their funds and close their accounts.
Binance tweeted:
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. Albeit a small market, it held sentimental value for us as the home country of our founder. 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. Our remaining Canadian users are receiving an email with comprehensive information on how this will impact their accounts going forward. 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. 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.
Binance’s exit from Canada is the latest sign of the growing regulatory scrutiny of the cryptocurrency industry. In recent years, governments around the world have been cracking down on cryptocurrency exchanges, in an effort to protect consumers and prevent money laundering and terrorist financing.
It is unclear what the impact of Binance’s exit will be on the Canadian cryptocurrency market. However, it is likely that other exchanges will be watching closely to see how the Canadian government’s regulatory approach evolves.
Here are some of the key points from Binance’s announcement:
- Binance will be exiting the Canadian market effective immediately.
- The company is working with its Canadian customers to withdraw their funds and close their accounts.
- Binance cited new guidance from the Canadian Securities Administrators (CSA) on stablecoins and investor limits as the reason for its decision.
- Binance said that it had explored all options to continue operating in Canada, but that the new regulations made it impossible for the company to do so.
- Binance’s exit from Canada is the latest sign of the growing regulatory scrutiny of the cryptocurrency industry.
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