Binance Announces Withdrawal from Canadian Market amid New Regulations
TEHRAN (Tasnim) – Binance, the leading cryptocurrency exchange by volume, revealed its decision to cease operations in Canada due to the country's newly implemented regulations governing the crypto industry.
In a tweet on Friday, the exchange expressed disappointment with the regulatory changes that have complicated its operations.
"Today we are announcing that Binance will be 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 tweeted.
The exchange acknowledged that it had delayed this decision, considering Canada's sentimental value as the home country of Binance founder Changpeng Zhao. However, Binance stated that the new regulatory framework leaves them with limited options to protect their Canadian users.
"Our remaining Canadian users are receiving an email with comprehensive information on how this will impact their accounts going forward. We hope to continue to engage with Canadian regulators aimed at a thoughtful, comprehensive regulatory framework," Binance added, expressing the possibility of returning to the Canadian market when users have access to a broader range of digital assets.
In February, the Canadian Securities Administrators (CSA) introduced new guidelines demanding enhanced investor protection commitments from crypto asset trading platforms, following insolvencies involving multiple platforms. These guidelines included investor limits, mandatory registrations for crypto exchanges, and the prohibition of stablecoin transactions without CSA permission.
Binance has faced increased scrutiny from North American regulators in recent times and appears to be scaling down its operations in the region. The exchange had previously mentioned the potential termination of its partnerships with US business entities.
Changpeng Zhao ("CZ"), co-founder and CEO of Binance, holds Canadian citizenship, and the company emphasized the sentimental value associated with its departure from Canada.
Reports from late March indicated that Binance was likely to withdraw from Canada, while its competitor Coinbase engaged in discussions to continue its operations in the country.
Binance, along with other crypto trading platforms, has encountered intensified regulatory scrutiny since the collapse of its rival FTX last year, which triggered a market downturn and substantial losses in the crypto industry's market value. Lawmakers have called for stricter regulations and increased transparency regarding the operations and handling of customer funds by crypto companies.
Earlier this year, reports surfaced of Binance potentially severing ties with its US business partners amid ongoing investigations by various government agencies.