On Friday, Binance announced its decision to exit the Canadian market following the country’s recent issuance of a series of updated regulations for cryptocurrency exchanges, which included requirements for investor limits and obligatory registrations.
In the past few months, Canada has increased its control over crypto asset trading platforms, introducing a preliminary registration process. The Ontario Securities Commission’s website states that companies failing to comply with these regulations are susceptible to enforcement actions.
Regrettably, Binance, a leading cryptocurrency exchange, has found it untenable to continue operations in the Canadian market due to the newly released guidelines concerning stablecoins and investor limits. Binance expressed this sentiment via a tweet.
Binance is at odds with the recent regulatory guidance and looks forward to interacting with Canadian authorities to establish a detailed framework for crypto activities in the country.
The crypto exchange, established by Canadian Changpeng Zhao, remains hopeful about a future return. “We firmly believe in our eventual comeback to the market, once Canadian users regain the liberty to explore a wider range of digital assets,” Binance stated.
Global regulators have been placing the digital assets industry under intense scrutiny, particularly since the downfall of Binance’s competitor, FTX, in November. This event led to a significant dip in the prices of major cryptocurrencies.
The 2022 crypto winter, responsible for erasing over a trillion dollars from the industry’s market capitalization, resulted in calls from lawmakers and securities regulators for stricter regulations regarding disclosures on how cryptocurrency companies operate and manage client funds.
In a related development, the U.S. Commodity Futures Trading Commission filed a lawsuit against Binance and its CEO, Zhao, in March. The regulatory body accused them of running an “unlawful” exchange and a “deceptive” compliance program.
