Binance, the largest cryptocurrency exchange in the world, has announced that it will be withdrawing from the Canadian market. The decision comes following new guidance around stablecoins and investor limits. Binance had been exploring alternative options to protect their Canadian user base, but ultimately determined that none were feasible.
Canadian Securities Administrators Tightens Regulations
The Canadian Securities Administrators implemented stricter registration requirements for cryptocurrency exchanges in February. These requirements include enhanced expectations for custody and segregation of crypto assets held on behalf of Canadian clients, a prohibition on offering margin, credit, or other forms of leverage to any Canadian client, and a ban on permitting clients to purchase or deposit value-referenced crypto assets, commonly known as stablecoins.
Future Return to Market Possible
Binance expressed gratitude to the regulators who worked collaboratively with them to address the needs of Canadian users. The Canadian market held sentimental value for Binance as the home country of its founder, Changpeng Zhao, who is a Canadian citizen. While the exchange does not agree with the new guidance, they hope to continue engaging with Canadian regulators to establish a thoughtful and comprehensive regulatory framework. Binance remains confident that it will someday return to the Canadian market when users once again have the freedom to access a broader range of digital assets. Canadian users impacted by the withdrawal will receive information regarding their accounts from Binance.