Binance has decided to depart from Canada in light of the increasing regulatory pressure in North America.
Binance, a cryptocurrency exchange, said it would cease operations in Canada due to its unfavourable regulatory environment.
In a tweet on Friday, the company stated, “We had high hopes for the rest of the Canadian blockchain industry.” The Canadian market is currently unsustainable for Binance due to new instructions regarding stablecoins and investor limits offered to cryptocurrency exchanges.
The Canadian Securities Administrators (CSA) published new recommendations in February that forbade cryptocurrency asset trading platforms operating in the nation from allowing users to purchase or deposit stablecoins without first receiving the CSA’s approval.
According to those regulations, cryptocurrency trading platforms must adhere to custody regulations, guarantee that cryptocurrency assets kept for local clients are segregated, and refrain from providing margin, credit, or other types of leverage.
The cryptocurrency trading platform would need to pass each of the CSA’s due diligence requirements in order to be approved. The largest cryptocurrency exchange in the world by volume stated that the withdrawal was caused by new instructions regarding stablecoins and investor limits.
Binance said in a tweet on Friday that it did not agree with the new rules but hoped to continue working with Canadian regulators to create a framework for regulating cryptocurrencies.
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
Regulators in North America have been scrutinizing Binance more closely over the past year, and the company now is shutting down activities there. Binance announced earlier this year that it was considering severing relations with its U.S. business partners.
Changpeng Zhao (“CZ”), co-founder and CEO of Binance, is a Canadian citizen, and the company has stated that its decision to exit the nation has “sentimental value.”
Customers in Canada will get emails from Binance outlining the next stages and how the business’s exit from the nation will affect their accounts.