Binance calls it quits in Canada, blames new rules

Binance will withdraw from the Canadian market, the cryptocurrency exchange announced on Twitter on May 12. It called its withdrawal “proactive” as new guidance issued by Canadian regulators continues to take a toll on the country’s crypto industry.

Binance is joining some of its smaller competitors in the Canadian exodus brought on by the introduction of rules by the Canadian Securities Administrators (CSA) on Feb. 22 that required them to file new preregistration undertakings and adhere to added restrictions.

Although Binance had reportedly filed a new preregistration undertaking, it explained in a tweet:

“Unfortunately, new guidance related to stablecoins and investor limits provided to crypto exchanges makes the Canada market no longer tenable for Binance at this time.”

The new CSA rules prohibited firms “from permitting Canadian clients to enter into crypto contracts to buy and sell any crypto asset that is itself a security and/or a derivative,” and defined stablecoins as a security.

OKX pulled out of the Canadian market in March. It was followed in April by decentralized exchange dYdX and then by blockchain fintech Paxos.

Related: Canada’s central bank asks citizens what they want in a digital dollar

Binance sent its Canadian users an email, seen by Cointelegraph, that instructed them to close their open positions by Sept. 30, 2023. “From October 1st, 2023, Canadian customers will be put into liquidation only mode,” it warned. The exchange added:

“While we do not agree with the new guidance, we hope to continue to engage with Canadian regulators aimed at a thoughtful, comprehensive regulatory framework.”

Binance operated in all Canadian provinces and territories except Ontario, which it withdrew from in March 2022 after a protracted disagreement with that province’s regulators.

All is not lost for Canadian cryptophiles, however. Kraken filed the new preregistration undertaking in March and stated its commitment to staying in Canada. The CSA lists 11 platforms “Authorized to Do Business with Canadians.”

Magazine: Your guide to crypto in Toronto: Crypto City

All Dutch and English crypto news!

Buying a bank won’t solve crypto’s debanking issue: Binance CEO

CZ highlighted examples such as regulatory complexity and capital requirements as reasons why he isn’t keen on Binance buying a bank.

XRP stijgt 5%, komt dat door rechtszaak Ripple vs SEC?

De koers van XRP heeft zowaar een goed begin van de week en is met 5% gestegen in de afgelopen 24 uur. Dat is een...

Bitcoin Ordinals surpass 10M inscriptions as creator Rodarmor steps down

The number of Ordinals has grown from one to 10 million in less than six months.

Crypto exchange TrigonX latest to emerge from the FTX rubble

TrigonX is back from the dead after it went into receivership in December, due in part to its $13 million exposure to bankrupt crypto exchange...

Beste exchanges

Koop je crypto bij Bitvavo