Binance Announced Its Exit From Canada
Binance, the largest cryptocurrency exchange in the world, announced that it is withdrawing from Canada. Amid the latest cryptocurrency rules and regulations in the country, Binance announced its withdrawal from Canada. Canada recently issued new guidelines for cryptocurrency exchanges, including investor limits and mandatory registrations.
Introducing a pre-registration process, Canada has recently tightened regulations for crypto trading platforms. According to the website of the Ontario Securities Commission, companies that do not follow the regulations could face potential enforcement action.
Binance, in a tweet, claimed that Binance cannot operate in Canada as per the latest changes for exchanges.
“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.
However, Binance announced that it is not possible to provide service as per the new changes made by Canada, but it hopes to engage with the Canadian regulators to create comprehensive and crypto-friendly regulations.
The founder of Binance, Changpeng Zhao, a Canadian national popularly known as CZ Binance, is optimistic about returning to the Canadian market in the future.
“We are confident that we will someday return to the market when Canadian users once again have the freedom to access a broader suite of digital assets,” he said.
The biggest crypto exchange has been on the radar of regulators around the world, especially after the collapse of Binance’s rival FTX, Regulators are more concerned about creating tight regulatory frameworks for crypto exchanges. In November, FTX’s collapse caused huge losses for the market.
This downfall has wiped out trillions of dollars from the crypto market. Since then, regulators are on the verge of making tighter regulations for the form that holds trillions of dollars of public money.
In March, Binance and its CEO, Zhao, were accused by the U.S. Commodity Futures Trading Commission of running an illegal exchange and having a fake compliance program.
