Binance exists Canadian market due to strict crypto rules

In a recent development, cryptocurrency exchange Binance, has decided to cease its operations in Canada. The exchange stated via a Tweet on Friday that it was compelled to exit the country due to Canada’s regulations surrounding stablecoins and investor restrictions.

Binance tweeted:

Unfortunately, today we are announcing that Binance will be joining other prominent crypto businesses in proactively withdrawing from the Canadian marketplace.

The exchange added:

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. We put off this decision as long as we could to explore other reasonable avenues to protect our Canadian users, but it has become apparent that there are none.

The Canadian Securities Administrators (CSA) issued a notice categorizing stablecoins as ‘securities and/or derivatives’ in December last year. This classification has imposed restrictions on regulated crypto exchanges in Canada, preventing them from providing services involving stablecoins, which constitute a significant portion of the industry.

Additionally, Canada, particularly the regulatory authority in Ontario, the regulatory body has enforced a requirement for all cryptocurrency exchanges operating in the country to undergo registration.

Binance has recently encountered regulatory challenges in the United States as well. The US Commodity Futures Trading Commission (CFTC) has taken legal action against both the exchange and its CEO for breaching a variety of local regulations.

In light of these circumstances, Binance’s Chief Strategy Officer, Patrick Hillmann, recently disclosed that the exchange is contemplating seeking regulatory approval in the United Kingdom. Binance had previously withdrawn its application for registration with the Financial Conduct Authority (FCA) due to a conflict with UK regulators.

© 2007 – 2024 Trading financial instruments carries high level of risk to your capital with the possibility of losing more than your initial investment. This site will not be held liable for any loss or damage in result from using the information within the site including forex Broker reviews 2024, market analysis, trading signals, learning resources and comparison tables. The data within this website is not necessarily real-time nor accurate and do not represent the recommendations of the employees. Currency trading is not suitable for all investors. Before deciding to trade currency or any other financial instrument please consider consider your investment objectives, level of experience, and risk appetite. While we do our best to provide up-to-date information, we strongly encourage you to verify it directly with the broker of your choice.