- Binance has decided to exit the Canadian crypto market due to its challenging regulatory regime.
- Binance blamed its departure on Canada’s recent overhaul of regulations for crypto entities.
- The crypto exchange has indicated that it may return to the Canadian market in the future if regulations turn favorable.
Binance has announced that it will wind down its operations in Canada due to the unfavorable regulatory climate in the country. The decision by the world’s largest crypto exchange to exit the Canadian market comes more than two months after the country’s top regulators unveiled a series of enhanced regulations for the crypto industry.
Binance recently took to Twitter to share the latest development regarding its operations in Canada. The crypto exchange acknowledged the assistance from Canadian regulators in collaborating towards appropriate regulation for the country’s crypto industry in order to address its customers.
The crypto exchange revealed that it served Canadian users despite Canada being a relatively small market, due to the sentimental reasons associated with its founder. Changpeng Zhao, the founder, and CEO of Binance, was born in China but has been a Canadian citizen for decades.
Binance revealed that the major reason behind its withdrawal from the Canadian market was the Canadian Securities Administrators (CSA) Changes to Enhance Canadian Investor Protection, which was unveiled in February this year. It was essentially an overhaul of regulations aimed at enhancing investor protection.
At the time, the Canadian regulator warned the crypto exchanges operating in the country that they would have to comply with the enhanced regulations, which included segregation of crypto assets held for Canadian users, prohibition of margin or other forms of leverage, and a ban on selling stablecoins without the CSA’s approval.
“While we do not agree with the new guidance, we hope to continue to engage with Canadian regulators aimed at a thoughtful, comprehensive regulatory framework,” Binance stated. The exchange indicated that it may return to the Canadian market if regulators allow users to access a broader suite of digital assets in the future.