Binance, a major cryptocurrency exchange, announced on May 12 that it will be halting operations in Canada. The company stated that it is joining other crypto companies who are “proactively withdrawing from the Canadian marketplace.” Despite Canada being a small market with sentimental value, Binance explained that recent regulatory guidance in the country has made operating there unfeasible.
In February, Canadian securities regulators established new guidance requiring crypto companies to submit pre-registration filings and follow certain rules. Specifically, crypto companies operating in Canada must now segregate funds belonging to Canadian users and withhold margin or leverage trading from those users. Other crypto companies that have withdrawn their services from the Canadian market include Paxos, dYdX, Blockchain.com, and OKX.
Binance does not agree with the new regulatory guidance, but it intends to continue engaging with Canadian regulators and eventually return to the market “when Canadian users once again have the freedom to access a broader suite of digital assets.” The company added that it delayed its departure from Canada for as long as possible.
Despite Binance’s exit from Canada, Kraken, Coinbase, Crypto.com, and Gemini have stated that they intend to continue operating in the country. Binance remains optimistic about the development of Canada’s crypto sector and hopes to eventually re-enter the market when regulatory conditions improve.