Binance declared that it will be leaving the Canadian market. The cryptocurrency exchange described its decision as “proactive” in response to the adverse impact on the crypto industry caused by the new guidelines issued by Canadian regulators.
Binance Announces Exit from Canada, Blames New Regulations
Binance has announced its decision to withdraw from the Canadian market due to challenging regulatory guidelines. In a tweet posted on May 12, the company stated that the new guidelines related to stablecoins and investor limits provided to crypto exchanges have made the Canadian market no longer feasible for Binance. The tweet further expressed the company’s disappointment and added that it had high hopes for the Canadian blockchain industry.
The regulatory environment for cryptocurrencies in Canada has been under scrutiny for some time now. In February, the Canadian Securities Administrators (CSA) issued new guidelines, which prohibited crypto asset trading platforms within the country from allowing customers to buy or deposit stablecoins without prior approval from the CSA. This approval would require the crypto trading platform to pass various due diligence checks.
Binance’s decision to withdraw from the Canadian market is a significant setback for the country’s crypto industry. The company’s global presence and popularity have made it a preferred choice for many investors. However, the company expressed hope to work with Canadian regulators to further develop a regulatory framework around cryptocurrencies. Binance added that it did not agree with the new regulations but still hopes to find a way to work with Canadian regulators in the future.
Binance has been facing increased regulatory scrutiny from North American regulators in the past year, which has resulted in a reduction of its operations in the region. Earlier this year, the company announced that it was contemplating ending its business partnerships in the United States.
To access more crypto news: cryptodataspace.com
Leave a comment