Binance Withdraws From Canada Amid Tougher Crypto Regulations

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Binance, the world’s largest cryptocurrency exchange, has said it is pulling out of Canada due to tighter regulation and oversight of crypto trading.

The move comes after the team responsible for enforcing cryptocurrency regulations in Canada, the Canadian Securities Administration (CSA) unveiled new guidelines that prevented crypto trading platforms from allowing customers in Canada to purchase or deposit stablecoins without agency approval.

As CoinDesk(Opens in a new window) notes, Binance would have been required to pass CSA due diligence checks before being approved to allow customers to purchase or deposit stablecoins. As reported by Bloomberg(Opens in a new window), the Canadian subsidiary of Binance had started registering for due diligence checks in March before deciding to withdraw.

In a tweet(Opens in a new window) Friday announcing the exit from Canada, Binance, whose CEO Chanpeng Zhao is a Canadian citizen, said, “We had high hopes for the rest of the Canadian blockchain industry. Unfortunately, new stablecoin guidelines and investor limits provided to crypto exchanges make the Canadian market more tenable for Binance at this time.

The tweet added: “We have postponed this decision for as long as we could to explore other reasonable means to protect our Canadian users, but it has become apparent that there are none… 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.

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Meanwhile, in the US, the DOJ and Internal Revenue Service have been investigating reports that Binance has been used for money laundering schemes(Opens in a new window) since 2021, with prosecutors considering the CEO Zhao as being investigated alongside other executives. . The cryptocurrency platform is also reportedly being investigated for allowing its users to circumvent sanctions(Opens in a new window) imposed on Russian banks.

Binance has, however, maintained(Opens in a new window) that it has one of the “most sophisticated anti-money laundering systems in the world”.

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