Binance, the world’s leading cryptocurrency exchange, intends to withdraw from the Canadian market. The decision was made in response to the challenging regulatory environment in the country, which has become increasingly stringent in recent months. This move comes after Canadian regulators introduced a set of new regulations aimed at strengthening the crypto industry.
Binance has taken to Twitter to announce its latest Canadian operations progress. The cryptocurrency exchange expressed gratitude towards Canadian regulators for their support in establishing suitable regulations for the country’s crypto industry to serve its customers better.
Binance, the renowned crypto exchange, recently disclosed that it extended its services to Canadian users, despite the country’s relatively modest market size. The decision was driven by the emotional ties that its founder, Changpeng Zhao, has with Canada. Although born in China, Zhao has been a Canadian citizen for several decades, making the country a special place close to his heart. As a responsible and professional organization, Binance strives to cater to the needs of its users, regardless of their location or market size.
Binance has disclosed that its decision to withdraw from the Canadian market was primarily due to the regulatory changes introduced by the Canadian Securities Administrators (CSA) in February 2021. The CSA’s amendments were designed to bolster investor protection by revamping existing regulations.
The Canadian regulatory body issued a stern warning to crypto exchanges operating within its jurisdiction, mandating strict adherence to enhanced regulations. These regulations encompassed the segregation of crypto assets held for Canadian users, a complete prohibition on margin or other forms of leverage, and a ban on the sale of stablecoins without prior approval from the CSA. All crypto exchanges operating in Canada must comply with these regulations to ensure the safety and security of Canadian users.
Binance disagreed with the latest regulatory guidance but remains committed to constructive dialogue with Canadian regulators to establish a comprehensive and well-considered regulatory framework. The exchange has indicated that it would consider returning to the Canadian market if users are granted access to a wider range of digital assets in the future.
