On Friday, Binance, a prominent cryptocurrency exchange, announced its withdrawal from the Canadian market. This decision comes in response to new guidelines issued by the Canadian government for cryptocurrency exchanges, which include restrictions on investors and mandatory registrations.
Canada has been tightening regulations for crypto asset trading platforms in recent months, implementing a pre-registration process. Non-compliant companies could face enforcement actions, as stated on the website of the Ontario Securities Commission.
Binance expressed disagreement with the latest guidance and stated that the Canadian market is no longer viable for them due to the new rules related to stablecoins and investor limits. The exchange hopes to engage with Canadian regulators to establish a comprehensive framework for crypto operations in the country.
Despite the withdrawal, Binance remains optimistic about the future and expressed confidence in eventually returning to the Canadian market once users have the freedom to access a wider range of digital assets. It’s worth noting that Binance was founded by Changpeng Zhao, a Canadian national.
Regulators worldwide have been focusing on the digital assets industry, particularly following the collapse of FTX, a rival exchange, in November. This event triggered a market decline in the prices of major cryptocurrencies. In response, lawmakers and securities regulators have been demanding stricter guidelines for disclosure and customer fund management from crypto companies.
In March, Binance and its CEO Changpeng Zhao faced legal action from the U.S. Commodity Futures Trading Commission, which accused the exchange of operating an “illegal” exchange and having a “sham” compliance program.
