Binance Withdraws from Canadian Market Due to New Cryptocurrency Regulations
Binance Withdraws from Canada due to New Crypto Regulations
Binance announced on Friday that it was pulling out of Canada, following the country’s recent introduction of guidelines for cryptocurrency exchanges, including investor limits and mandatory registrations.
The Canadian government has tightened regulations on cryptocurrency trading platforms in recent months with the introduction of a pre-registration process. The Ontario Securities Commission’s website states that companies that do not comply with the rules will face potential enforcement action.
Binance stated in a tweet that “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 does not agree with the latest guidance and intends to engage with Canadian regulators to create a comprehensive framework for crypto operations in the country.
The digital assets industry has come under increased regulatory scrutiny worldwide, especially since the collapse of FTX, a Binance rival, in November, which triggered a market rout in the prices of major digital coins.
Following the onset of the crypto winter of 2022, which wiped out more than a trillion dollars from the industry’s market value, lawmakers and securities regulators demanded tighter guidelines for disclosures on how crypto companies operate and hold customer funds.
In March, Binance and its CEO Changpeng Zhao were sued by the US Commodity Futures Trading Commission for operating what the regulator alleged was an “illegal” exchange and a “sham” compliance program.