Salut Canada: Binance Exits Canada Citing Regulatory Taughtness
- Binance announced on Friday that it would be exiting the Canadian crypto market citing harsh regulations put in place by the CSA.
- The Largest crypto exchange by market volume would be joining other crypto exchanges including Paxos and dYdX in exiting the Canadian digital asset market amid regulatory heat.
The largest cryptocurrency exchange by market volume, Binance, will be biding Canada adieu very soon. This comes after the cryptocurrency exchange announced that it will be ceasing operations in Canada citing the heated regulatory environment in Canada.
One of the most popular crypto exchanges today, confirmed that it would be retreating from the Canadian Digital Asset sector on May 12. This is happening in the thick of increased regulatory stipulations brought in by the Canadian Securities Administrators, the umbrella organization of Canada’s provincial and territorial securities.
Led by the prominent Chao Peng Zhao, Binance put the announcement to Twitter stating that it would be joining other crypto exchanges including Paxos and dYdX in exiting the Canadian digital asset market amid regulatory heat.
Unfortunately, today we are announcing that Binance will be joining other prominent crypto businesses in proactively withdrawing from the Canadian marketplace.
We would like to thank those regulators who worked with us collaboratively to address the needs of Canadian users.…
— Binance (@binance) May 12, 2023
Furthermore, the statement indicated that the new guidelines implied on stable coins and investor limits have made Canada no longer reasonable for Binance at this time.
Canada Strengthens Regulations for Cryptocurrency Trading Firms
Late last year, the CSA put to notice that they expected “pledges” from unregistered crypto trading firms in Canada as they look foward to registering with the regulator. These “pledges manifested in the form of pre-registration undertaking (PRU), which came in handy with terms and conditions.
Come December, the CSA elevated their regulatory game stating that past events in the crypto industry has led the CSA in strengthening its manner to oversight crypto trading platforms. That would be seen through by expanding existing requirements for platforms operating in Canada.
The expanded requirements took effect on February this year after the CSA released the Changes to Enhance Canadian Investor Protection which clearly stated that crypto trading firms that opted to do business in Canada were to abide with the updated PRU while they await approval.
Binance has since then not been able to come to terms with the updated PRU which seems to be a stumbling point for them. The firm was unable to make a firm decision as they tried to seek other avenues with regulators.
Nevertheless, on Friday the leading crypto exchange came to a conclusion saying that “it has become apparent that there are none.”
The firm added that it would be sending emails stipulating its next steps and how its withdrawal from the country will impact accounts.
