Binance withdraws from Canada, blaming new regulations
Due to new rules that the CSA imposed on February 22 that required them to file new preregistration undertakings and adhere to new rules, Binance has decided to leave Canada along with a number of its smaller competitors.
The cryptocurrency exchange Binance announced its exit from the Canadian market on Twitter on May 12. It referred to its withdrawal as "proactive" as new regulatory guidelines from Canada's regulators continues to harm that nation's cryptocurrency market.
Binance is joining several of its smaller rivals in leaving Canada due to new regulations that the Canadian Securities Administrators (CSA) introduced on February 22 that required them to submit new preregistration undertakings and follow new regulations.
Binance discontinues operations in Canada and cites new regulations
As mentioned above, Binance tweeted on May 12 that it was leaving the Canadian market. It described its departure as "proactive" in light of the ongoing harm that new regulatory guidelines from Canadian regulators are causing to that country's cryptocurrency economy.
Due to new rules that the Canadian Securities Administrators (CSA) imposed on February 22 that required them to file new preregistration undertakings and adhere to new rules, Binance has decided to leave Canada along with a number of its smaller competitors. Despite allegedly submitting a fresh preregistration undertaking, Binance clarified in a tweet:
The Canada market is now unviable for Binance due to new instructions regarding stablecoins and investor limits offered to cryptocurrency exchanges.
The new CSA regulations identify stablecoins as securities and forbid companies from "allowing Canadian clients to enter into crypto contracts to buy and sell any crypto asset that is itself a security and/or a derivative."
In March, OKX left the Canadian market. The decentralised exchange dYdX and the blockchain fintech Paxos came after it in April.
Users in Canada were urged by email from Binance to cancel any open holdings by September 30, 2023. Canadian consumers would be forced into liquidation-only mode as of October 1, 2023, it said. The conversation went on to say:
Even if we disagree with the new advice, we want to keep working with Canadian regulators to develop a smart, thorough regulatory framework.
Except for Ontario, where it ceased operations in March 2022 following a protracted dispute with the provincial authorities, Binance was active in all Canadian provinces and territories.
However, all is not lost for Canadian cryptophiles. Kraken pledged to remain in Canada when it submitted the new preregistration undertaking in March. 11 platforms are listed by the CSA as being "Authorised to Do Business with Canadians."
Let us see how this action affects future crypto regulation.
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