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Crypto News - Archive

Binance Exits Canadian Market As Crypto Regulations Tighten

Author

Jay Solano

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Reading time

2 mins
Last update

Author

Jay Solano

Tags

Category

Crypto News - Archive

Reading time

2 mins
Last update

Author

Jay Solano

Tags

Reading time

2 mins
Last update

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Binance Retreats From Canadian Market Amid Regulatory Shift

Binance, the world’s biggest cryptocurrency exchange, has stated that it will leave the Canadian market due to the tightening of restrictions in Canada.

Binance clarified that it could not continue operating in the Canadian market due to new regulations on stablecoins and limits placed on cryptocurrency exchanges.

Binance elaborated on its decision, stating that it had explored alternative options to delay the implementation and safeguard the interests of its Canadian users but found no viable solutions. 

It mentioned that they would be reaching out to Canadian users via email to provide them with detailed information regarding the forthcoming consequences. Despite expressing disagreement with the regulatory agency’s new guidance, Binance emphasized its commitment to engaging in discussions with Canadian regulators to establish a comprehensive and well-considered regulatory framework.

Changpong Zhao (CZ), the co-founder and CEO of Binance, added that the Canadian market had “emotional value” for the company because he is Chinese-Canadian.

Stricter Oversight Imposed On Stablecoins And Leverage In Regulatory Crackdown

In February, the Canadian Securities Administration (CSA) declared it would improve investor safety on cryptocurrency exchanges, signaling a change in the legal landscape.

Without the CSA’s previous written approval, cryptocurrency exchanges are not permitted to provide their consumers with services like purchasing or depositing stablecoins or proprietary tokens.

Offering leveraged products, including margin trading, to Canadian users is likewise restricted. Additionally, regulatory guidelines for the custody and management of virtual currencies held by users on a separate basis have been enhanced.

The Canadian Standards Association (CSA) will take the necessary actions to terminate service to current Canadian customers and bar Canadian users from accessing their products and services if a business registration is not provided that includes these conditions. 

CSA Chairman Stan Majidson acknowledged the context behind the stricter regulations, noting that the recent bankruptcies of cryptocurrency trading platforms have underscored the substantial risks associated with trading cryptocurrencies. 

He emphasized that these risks are particularly heightened when trading is conducted on unregistered platforms operating outside of Canada. This statement highlights the need for enhanced regulatory measures to protect investors and mitigate potential risks within the cryptocurrency industry.

Due to the bankruptcy of FTX and the collapse of the old Terra ecosystem in 2022, a portion of the pension fund in Canada was also impaired.