Binance Leaves Canada, Citing New Regulatory Rules
May 12, 2023
Crypto & Blockchain
In response to the recent regulations set by the Canadian Securities Administrators (CSA), which required crypto exchanges to comply with new preregistration undertakings and adhere to additional restrictions, Binance is following the lead of some of its smaller competitors by exiting the Canadian market.
In February, the Canadian Securities Administrators (CSA) issued updated guidance that forbade crypto asset trading platforms in the country from enabling customers to purchase or deposit stablecoins without prior approval from the CSA. To receive approval, the crypto trading platform would have to successfully pass various due diligence assessments conducted by the CSA.
In today's tweet on May 12th, Binance stated, "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.”
While Binance disagreed with the recently introduced regulations, the company expressed its desire to collaborate with Canadian regulators in establishing a regulatory structure for cryptocurrencies.
Binance had been present in all Canadian provinces and territories except Ontario, but ultimately withdrew from Ontario in March 2022 following a prolonged dispute with regulators in that province.
In addition, the crypto exchange has been under heightened regulatory scrutiny from North American authorities over the past year, and is now reducing its operations in the region. The company had previously announced its intention to end its relationships with U.S. business partners earlier this year.
Despite this setback, Canadian cryptocurrency users can expect Kraken to pick up the slack. The organization filed the new preregistration undertaking in March and stated its commitment to staying in Canada. The CSA lists 11 additional platforms “Authorized to Do Business with Canadians.”
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