After a bit of a struggle to gain access to the Canadian market, Binance has decided to exit the country.
In an extended Tweet, Binance announced its decision.
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
Binance thanked the regulators who had worked with the crypto exchange adding that it was the home country of its founder, Chanpgeng Zhao (CZ) and thus held sentimental value.
Binance said that new guidance regarding stablecoins and investor limits on its exchange make operating in the country not feasible.
“Our remaining Canadian users are receiving an email with comprehensive information on how this will impact their accounts going forward. 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. 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.”
Canada, like most other developed countries, has been cracking down on crypto trading, applying more stringent rules to enhance investor protection as well as demanding compliance with KYC/AML rules – a characteristic for many crypto markets that simply did not exist for years.
Binance had already announced the cessation of operations in Ontario and an intent to halt operations in the province last year.
Binance is currently under investigation and the target of an enforcement action by the US Commodities Futures Trading Commission for “numerous violations.”
Binance, the largest crypto exchange in the world, is a fat target for regulators in many jurisdictions. Recently, a report indicated that its founder was looking to reduce share ownership in Binance.US the crypto exchange that currently serves US crypto investors.