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Binance announced on Friday that it was pulling out of Canada, weeks after the country issued a series of new guidelines for cryptocurrency exchanges, including investor limits and mandatory registrations.
Canada has tightened the regulation of crypto asset exchanges in recent months, with the introduction of a pre-registration process. Companies that don’t follow the rules will face potential enforcement action, according to the Ontario Securities Commission’s website.
“Unfortunately, (the) new stablecoin guidelines and investor limits provided to crypto exchanges make the Canadian market more tenable for Binance at this time,” crypto exchange Binance said in a tweet.
Binance said it disagrees with the latest guidelines and hopes to engage with Canadian regulators to create a comprehensive framework for crypto operations in the country.
“We are confident that we will one day return to the market when Canadian users once again have the freedom to access a broader suite of digital assets,” said the crypto exchange, founded by Canadian national Changpeng Zhao.
The digital asset industry has been in the crosshairs of regulators around the world, especially since the collapse of Binance rival FTX in November, which sparked a market rout in the prices of the biggest digital coins.
After the onset of the crypto winter of 2022, which wiped out over $1 trillion of industry market value, lawmakers and securities regulators demanded stricter guidelines for disclosures on how whose crypto companies operate and hold client funds.
In March, Binance and its CEO Zhao were sued by the US Commodity Futures Trading Commission for operating what the regulator called an “illegal” exchange and “sham” compliance program.
(Reporting by Manya Saini in Bengaluru; Editing by Shinjini Ganguli)
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