Binance pulls out of Canadian market, here’s why

Binance made yesterday known that it will end its activities in the Canadian market. With this, the world’s largest crypto exchange joins some of its smaller competitors who have also withdrawn from the Canadian market due to regulations by the Canadian Securities Administrators (CSA).

Binance leaves Canada due to ‘challenging regulations’

Binance’s decision comes after the country introduced a series of new guidelines for crypto exchanges in February, requiring them to submit a new pre-registration requirement and adhere to additional restrictions.

Although Binance reportedly had a new pre-registration requirement submittedit explained in the tweet that new guidelines regarding stablecoins and investor limits for crypto exchanges have caused the market to become unsustainable for the exchange at this point.

The new guidelines forbade trading platforms in the country to “allow Canadian customers to enter into crypto contracts to buy and sell crypto assets that are themselves a security and/or derivative,” and defined stablecoins as a security.

Binance has sent an email to all Canadian users instructing them to close their open positions by September 30, 2023. From October 1, 2023, Canadian customers will be in liquidation only fashion be put,” it warned in the email.

In the tweet, Binance also said that despite disagreeing with the new regulations, it still hopes to work with Canadian regulators to further develop a regulatory framework around cryptocurrencies.

Canadian crypto market

Binance operated in all Canadian provinces and territories except Ontario, from which it pulled out in March 2022 after a lengthy disagreement with that province’s regulators. As mentioned earlier, Binance was not the first within the crypto landscape to move towards the exit. In March, a direct competitor of Binance, OKX, also pulled out of the Canadian market. Furthermore, decentralized exchange (DEX) dydX and blockchain fintech Paxos also left the country last month.

In contrast, the major exchange Kraken filed the new pre-registration obligation in March and has declared to continue operating in Canada. The CSSD sums eleven platforms that are “authorized to do business with Canadians.”

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