"Unfortunately, (the) new guidance related to stablecoins and investor limits provided to crypto exchanges makes the Canada market no longer tenable for Binance at this time," crypto exchange Binance said in a tweet.īinance said it does not agree with the latest guidance and hopes to engage with the Canadian regulators to create a comprehensive framework for crypto operations in the country. The companies that do not adhere to the rules will face potential enforcement action, according to the website of the Ontario Securities Commission. The CSA has also provided a list of 11 platforms that are “Authorized to Do Business with Canadians.” A few of these include CoinBerry, Netcoins, and Wealthsimple Digital Assets.īinance founder and CEO Changpeng Zhao, who more commonly goes by CZ, is Canadian.May 12 (Reuters) - Binance said on Friday it was withdrawing from Canada, weeks after the country issued a series of new guidelines for cryptocurrency exchanges including investor limits and mandatory registrations.Ĭanada has tightened regulations for crypto asset trading platforms in recent months, with the introduction of a pre-registration process. In March, California-based cryptocurrency exchange Kraken submitted the new preregistration undertaking and expressed its dedication to remaining operational in Canada. However, in March 2022, Binance decided to withdraw from Ontario due to an extended disagreement with the province’s regulators.Įarlier this year, OKX withdrew from the Canadian market, followed by decentralized exchange dYdX in April, and subsequently by blockchain fintech Paxos. Prior to the change, Binance had been operating in all Canadian provinces and territories, except Ontario. The email also cautioned that starting in October, Canadian customers would be restricted to a liquidation-only mode. The company also issued an email to its Canadian users, directing them to close their existing positions by September 30, 2023. Binance tells Canadian users to close positions Read more: Cipher Mining adds another 11,000 ASIC rigs to its fleet in deal with Canaan Inc. Read more: Bank of Canada opens public consultation on digital Canadian dollar We would like to thank those regulators who worked with us collaboratively to address the needs of Canadian users.… Unfortunately, today we are announcing that Binance will be joining other prominent crypto businesses in proactively withdrawing from the Canadian marketplace. Companies failing to comply with these new rules may face enforcement action, according to the Ontario Securities Commission.īinance expressed its disagreement with the newly imposed regulations but remains hopeful about collaborating with Canadian regulators to establish a comprehensive regulatory framework for cryptocurrencies. Additionally, stablecoins have been classified as securities according to the defined guidelines.Ĭanada has recently implemented stricter regulations for crypto asset trading platforms, including the introduction of a pre-registration process. Under the new rules set by the CSA, companies are not allowed to allow Canadian clients to engage in crypto contracts involving the purchase or sale of any crypto asset categorized as a security or derivative. To obtain approval, these platforms need to successfully pass several due diligence checks conducted by the CSA. In February, the Canadian Securities Administrators (CSA) issued new guidance stating that crypto asset trading platforms in Canada are not allowed to let customers purchase or deposit stablecoins without prior approval from the CSA. On Friday, Changpeng Zhao, Binance’s CEO and founder, indicated the reason was due to the new guidance on stablecoins and proposed investor limits. Binance, the largest cryptocurrency exchange in the world, is leaving the Canadian market citing regulatory tensions as the cause.
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