Binance Exits Canada Due To Regulatory Tensions• May 13, 2023 11:04 pm • Comments
Binance just announced that it will be ceasing all business operations in Canada due to the unfavorable regulatory environment.
This is not the first time that the company has revealed its position on the regulations in Canada, but it seems that things have gotten to a point where it no longer makes sense for the company to continue operating within the country.
Binance specifically stated that new rules related to stable coins and investor limits ultimately caused the firm to make the hard decision.
It is unclear if regulators in Canada will change the guidelines in the future, but this indicates another region where Binance has decided to stop providing services.
NEWS: Binance joins OKX, Paxos and dYdX in withdrawing from Canadahttps://t.co/yRNFSTfknr
— Blockworks (@Blockworks_) May 12, 2023
In February, the Canadian Securities Administrators (CSA) revealed new guidance that prohibited crypto asset trading platforms within the country from allowing customers to buy or deposit stablecoins without the CSA’s prior approval. Obtaining approval would require the crypto trading platform to pass the CSA’s various due diligence checks.
In its Friday tweet, Binance added that it did not agree with the new regulations but still hopes to work with Canadian regulators to further develop a regulatory framework around cryptocurrencies.
Over the past year, Binance has received increased scrutiny from North American regulators, and appears to be ramping down operations in the region.
Earlier this year, Binance said it was considering severing ties with its U.S. business partners.
With that being said, many crypto exchanges these days are focusing on diversifying their businesses to multiple regions around the world.
The reason for this is so that the firms can still survive if met with regulatory challenges in specific regions.
Both Coinbase and Binance have been exploring such strategies and it may become more common if the regulatory environments for crypto do not improve.
Binance has sent out an email to all Canadian users which instructed them to close all their positions by September 30 of this year.
The impact may be quite significant given that Binance represents a large portion of all crypto trading volume in the country.
Binance, the world’s biggest crypto exchange, will exit Canada after the country moved to impose new regulations on digital-currency trading platforms https://t.co/LrbKUh3moo
— Bloomberg (@business) May 12, 2023
Binance sent its Canadian users an email, seen by Cointelegraph, that instructed them to close their open positions by Sept. 30, 2023. “From October 1st, 2023, Canadian customers will be put into liquidation only mode,” it warned. The exchange added:
“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 operated in all Canadian provinces and territories except Ontario, which it withdrew from in March 2022 after a lengthy disagreement with the province’s regulators.
All is not lost for Canadian cryptophiles, however. Kraken filed the new preregistration undertaking in March and stated its commitment to staying in Canada. The CSA lists 11 platforms “Authorized to Do Business with Canadians.”
Binance breaks up with Canada over new crypto rules. It's not you, Canada; it's the regulations. https://t.co/CKkZQAzCLG
— Cointelegraph (@Cointelegraph) May 12, 2023
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