The largest cryptocurrency exchange in the world stated that the departure was due to new instructions about stablecoins and investor limitations.
Weeks after the nation established several new rules for cryptocurrency exchanges, including investor limitations and required registrations, Binance said on Friday that it planned to leave Canada.
The launch of a pre-registration procedure in Canada in recent months has resulted in tighter rules for platforms that trade crypto assets. On the website of the Ontario Securities Commission, it is stated that firms that do not follow the guidelines may be subject to enforcement action.
“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,” cryptocurrency exchange Binance stated in a tweet.
Binance stated that it disagrees with the most recent recommendations and that it intends to cooperate with Canadian regulators to develop a thorough framework for crypto operations there.
Changpeng Zhao, a Canadian who established the cryptocurrency exchange, stated, “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.”
In March, Kraken submitted a new preregistration undertaking in which it pledged to remain in Canada. There are 11 platforms on the CSA’s list of those “Authorised to Do Business with Canadians.”
The collapse of Binance competitor FTX in November, which led to a market crash in the values of the main digital currencies, has put the digital assets industry in the sights of authorities all over the world.
Legislators and securities regulators requested stricter rules for disclosures on how crypto businesses operate and manage consumer funds after the crypto winter of 2022, which erased more than a trillion dollars off the industry’s market capitalization.
The U.S. Commodity Futures Trading Commission sued Binance and its CEO Zhao in March for running what the regulator claimed was an “illegal” exchange and a “sham” compliance program.
Regulators in North America have been scrutinizing Binance more closely over the last year, and the company now seems to be scaling back activities there. Binance announced earlier this year that it was thinking about cutting relations with its U.S. business partners.