Binance, the world’s leading cryptocurrency exchange has made the decision to cease its operations in Canada. The company mentioned it was withdrawing due to the implementation of new regulations by the government. The news that Binance exits Canada was announced by the company via social media.
In a tweet on Friday, the company cited recent guidance concerning stablecoins and investor limits as reason behind this move. It stated that the new guidance has rendered the Canadian market unfeasible for Binance.
Although the Canadian market is relatively small, Binance emphasized its sentimental value as the home country of its founder, Changpeng Zhao, who is a Canadian citizen. Binance has assured its Canada-based users that they will receive email notifications outlining the impact of this decision on their accounts. While the company disagrees with the new regulatory guidance, it remains hopeful that it can resume its operations in Canada at a later time.
This comes after the Canadian Securities Administrators (CSA) issued guidance regarding stablecoins in February. As per that, stablecoin transactions require approval and crypto exchanges had a 30-day compliance deadline. Stablecoins are cryptocurrencies pegged to the value of other assets, such as the US dollar or gold.
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Binance exits Canada after struggle with regulators
Binance is not the only exchange to exit the Canadian market due to these regulations. OKX, another crypto exchange exited in March and blamed the new regulations for its departure.
The company has earlier faced challenges with Canadian regulators in late 2021. It initially encountered issues with the Ontario Securities Commission (OSC) for allegedly failing to meet securities laws. However, subsequent regulatory developments across the country prompted it to reassess its operations.
In the past year, Binance has faced heightened regulatory scrutiny in North America and seems to be slowing down its operations in the region. Earlier this year, Binance indicated that it is considering ending partnerships with its U.S. business partners.
A Coindesk report in late March said that Binance would withdraw from the Canadian market. At the same time, Coinbase, its competitor, was engaging in discussions to maintain its operations in the country.
Founded in 2017 by Changpeng Zhao, Binance quickly rose to become one of the world’s largest crypto exchanges. Today, Binance is a leading blockchain ecosystem and provider of cryptocurrency infrastructure. The company boasts the largest digital asset exchange based on trading volume globally.
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