Binance will withdraw from the Canadian market, the cryptocurrency exchange announced on Twitter on May 12. He called his withdrawal “proactive” as new guidelines issued by Canadian regulators continue to affect the country’s cryptocurrency sector.
Binance joins some of its smaller competitors in the Canadian exodus caused by the introduction of norms for the Canadian Securities Administrators (CSA) on February 22 that forced them to submit new pre-registration commitments and adhere to the added restrictions.
Although Binance had submitted a new pre-registration commitment, it explained in a tweet:
“Unfortunately, the new stablecoin-related guidelines and investor limits provided to cryptocurrency exchanges make the Canada market no longer sustainable for Binance at this time.”
The new CSA rules barred companies from “permitting Canadian clients to enter into crypto contracts to buy and sell any crypto asset that is itself a security and/or derivative,” and they defined stablecoins as a security.
Unfortunately, today we are announcing that Binance will be joining other prominent crypto businesses in proactively withdrawing from the Canadian marketplace.
We would like to thank those regulators who worked with us collaboratively to address the needs of Canadian users.…
—Binance (@binance) May 12, 2023
Sadly, we are announcing today that Binance will join other prominent cryptocurrency companies in proactively withdrawing from the Canadian market.
We would like to thank the regulators who worked with us collaboratively to address the needs of Canadian users…..
OKX withdrew from the Canadian market in March. It was followed in April by decentralized exchange dYdX and then by blockchain fintech Paxos.
Binance sent its Canadian users an email, seen by Cointelegraph, directing them to close their open positions by September 30, 2023. “Starting October 1, 2023, Canadian customers will be put into liquidation mode only,” warned. The exchange added:
“While we disagree with the new guidance, we look forward to continuing to engage with Canadian regulators with the goal of achieving a thoughtful and comprehensive regulatory framework.”
Binance operated in all Canadian provinces and territories except Ontario, from which it withdrew in March 2022 after a lengthy disagreement with that province’s regulators.
However, all is not lost for Canadian cryptophiles. Kraken submitted the new pre-registration commitment in March and declared its commitment to remain in Canada. The CSA lists 11 platforms “Authorized to do business with Canadians.”
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