Binance Exits Canadian Market Citing New Regulations as Untenable

Binance Exits Canadian Market Citing New Regulations as Untenable

Binance, the world's largest cryptocurrency exchange, has announced its withdrawal from the Canadian market due to new regulatory measures. The exchange expressed its disappointment with the recent guidance regarding stablecoins and investor limitations implemented for crypto exchanges, which it says have rendered the Canadian market untenable.

The decision was not made lightly, the company stated, as it had explored various avenues to ensure its customers' protection. The company emphasized that although Canada is a relatively small market for Binance, it holds sentimental value since Chanpeng Zhao, the founder, spent his formative years in the country.

Binance maintains its disagreement with the new regulatory framework but expressed its hope to continue engaging with Canadian regulators. The company expressed its confidence in a potential future return to the Canadian market when users regain broader access to digital assets.

The new regulations in Canada came as a response to the collapse of the FTX exchange, leading to more stringent rules for cryptocurrency companies. The Canadian Securities Administrators (CSA) has issued an ultimatum to unregistered companies, giving them a 30-day deadline to register in Canada or exit the market.

The updated regulations mandate that platforms safeguard the assets of Canadian clients with a suitable custodian and segregate these assets from the platform's proprietary business. Furthermore, the rules prohibit offering margin or leverage to any Canadian customer.

Meanwhile, other cryptocurrency companies are voicing concerns about the regulatory environment in the U.S., which is reportedly compelling companies to seek opportunities outside the country. Among them, Ripple CEO Brad Garlinghouse voiced his sadness over the U.S. being outpaced by other nations in promoting innovative policies.

Coinbase, another prominent crypto firm, is reportedly setting up operations in the United Arab Emirates (UAE) due to regulatory pressure in the U.S. Despite this, CEO Brian Armstrong stated in a Bloomberg TV interview that the U.S. remains a key market for Coinbase, and the company has no plans to leave, despite the uncertainty surrounding the country's crypto regulation.