Binance Withdraws from Canadian Market due to Tightened Crypto Regulations | National Crowdfunding & Fintech Association of Canada

Global News | Craig Lord | May 12, 2023

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Binance, the world's leading cryptocurrency exchange, has announced it is ceasing operations in Canada.

• The decision, communicated via Twitter, is in response to recent regulatory changes in the Canadian crypto market, including fresh guidance concerning stablecoins and investor limits. These regulatory changes, according to Binance, have rendered the market infeasible.
  • The Canadian authorities have been reinforcing regulations for crypto asset trading platforms, implementing a pre-registration process and potential enforcement action for non-compliance.
  • Binance, which had already faced restrictions in Ontario since 2022, found no viable way to continue its operations under these conditions.

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• Impact:
  • Canadian customers are to receive detailed information on the impact on their accounts via email.
  • Binance has expressed hopes of returning to the Canadian market in the future, when a broader range of digital assets becomes accessible.
  • The exchange also expressed its intent to continue dialogue with Canadian regulators to develop a comprehensive regulatory framework, despite its disagreement with the current guidance.
• This move comes amidst increased regulatory scrutiny of the digital asset industry worldwide, notably following the collapse of Binance's competitor, FTX, in November and the subsequent crypto winter of 2022.
  • Regulatory bodies are demanding stricter guidelines for crypto companies regarding their operations and management of customer funds. Binance and its CEO, Changpeng Zhao, also face a lawsuit by the U.S. Commodity Futures Trading Commission over allegations of running an "illegal" exchange and a "sham" compliance program.

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

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• Source: https://ncfacanada.org/binance-withdraws-from-canadian-market-due-to-tightened-crypto-regulations/