Binance set to withdraw from Canada citing new guidance
Binance has become the latest cryptocurrency exchange to exit the Canadian market citing new guidance.
In a statement released on 12 May, Binance said it was “joining other prominent crypto businesses in proactively withdrawing from the Canadian marketplace”.
“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 says.
“We put off this decision as long as we could to explore other reasonable avenues to protect our Canadian users, but it has become apparent that there are none.”
The move follows crypto exchange OKX pulling out of Canada in March citing the same reasons, and US blockchain infrastructure platform Paxos announcing its withdrawal from the country in April.
In February, the Canadian Securities Administrators (CSA) introduced a set of new rules for firms, stating crypto exchanges must have enhanced protections for the custody and segregation of crypto assets for Canadian clients and are prohibited from offering margin, credit or other forms of leverage. All cryptocurrency exchanges must also register with Canadian regulators before onboarding users in the country.
“While we do not agree with the new guidance, we hope to continue to engage with Canadian regulators aimed at a thoughtful, comprehensive regulatory framework,” Binance adds.