Binance is exiting the country, citing new rules governing stablecoins and investor limits.
Binance, the world’s largest cryptocurrency exchange by volume, announced in a tweet on Friday its intention to cease operations in Canada. The exchange cited a new set of regulations governing the crypto industry in Canada, which complicates its operations in the country.
“Today we are announcing that Binance will be joining other prominent crypto businesses in proactively withdrawing from the Canadian marketplace… We had high hopes for the rest of the Canadian blockchain industry. 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,” Binance tweeted.
The exchange noted that it had been putting off the decision to quit Canada for some time, due to its “sentimental value” as the home country of Binance founder, Changpeng Zhao. However, it stated that the new guidance has left Binance without “reasonable avenues to protect our Canadian users.”
“Our remaining Canadian users are receiving an email with comprehensive information on how this will impact their accounts going forward. We hope to continue to engage with Canadian regulators aimed at a thoughtful, comprehensive regulatory framework,” the exchange stated, adding that it may someday return to the Canadian market “when Canadian users once again have the freedom to access a broader suite of digital assets.”
In February, the Canadian Securities Administrators (CSA) unveiled new guidance demanding “enhanced investor protection commitments” from crypto asset trading platforms amid “insolvencies involving several crypto asset trading platforms.” Among other things, it set investor limits and mandatory registrations for crypto exchanges, and prohibited them from allowing customers to buy or deposit stablecoins within the country without the CSA’s permission.
Binance, along with other crypto trading platforms, has been facing increased scrutiny from regulators since last year’s collapse of its rival, FTX, which triggered a market rout and wiped out billions from the crypto industry’s market value. Lawmakers have been calling for tighter regulations on the industry and greater transparency about how crypto companies operate and how they handle customer funds. Earlier this year, reports emerged that Binance may also end ties with its US business partners amid investigations by various government agencies.
