May 17, 2023
By Sharan Kaur Phillora
Binance will withdraw from the Canadian market, the cryptocurrency exchange announced on Twitter on May 12. It called its withdrawal “proactive” as new guidance issued by Canadian regulators continues to take a toll on the country’s crypto industry.
Here’s what we know:
In February, the Canadian Securities Administrators (CSA) released new guidance that gives crypto trading platforms operating in the region 30 days to register or leave. The crypto firms that decide to register and stay must adhere to stricter rules, such as seeking the CSA’s approval before allowing users to buy or deposit stablecoins.
Although Binance had reportedly filed a new preregistration undertaking, it explained in a tweet: “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.”
The new CSA rules prohibit firms “from permitting Canadian clients to enter into crypto contracts to buy and sell any crypto asset that is itself a security and/or a derivative” and define stablecoins as a security.
Binance ended its announcement with a note saying it’s confident it will return to Canada, its CEO Changpeng Zhao’s home country, someday. It also said it hopes to continue engaging with Canadian authorities when forming a “thoughtful, comprehensive regulatory framework.”
Binance operated in all Canadian provinces and territories except Ontario, which it withdrew from in March 2022 after a lengthy disagreement with the province’s regulators.
About the author
Sharan Kaur Phillora’s thirst for knowledge has led her to study many different subjects, including NFTs and Blockchain technology – two emerging technologies that will change how we interact with each other in the future. When she isn’t exploring a new idea or concept, she enjoys reading literary masterpieces.
