United States-based cryptocurrency exchange Binance has announced that it shall withdraw from the Canadian market in a “proactive” manner due to new strict rules surrounding cryptocurrencies.

After the Canadian Securities Administrators (CSA) introduced new rules on February 22 which requires cryptocurrency exchanges to file fresh preregistration undertakings and adhere to added restrictions, Binance took to Twitter to explain that such action limits the crypto exchange’s potential in the nation:

“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 disallow 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 stablecoins are defined as a security.

Binance followed suit of other crypto entities which left Canada as a reaction to the new set of rules laid out by the CSA, and the exchange added that it wishes to re-enter the Canadian market, which is the home nation of its founder, once “a thoughtful, comprehensive regulatory framework” is set in place.

Sources:

https://cointelegraph.com/news/binance-calls-it-quits-in-canada-blames-new-rules

https://www.bloomberg.com/news/articles/2023-04-17/canada-s-new-crypto-rules-push-coinbase-coin-binance-to-comply

https://twitter.com/binance/status/1657099651210969088

https://www.asc.ca/-/media/ASC-Documents-part-1/Regulatory-Instruments/2023/02/6082629-CSA-Notice-21-332-Crypto-Trading-Platforms.ashx