Binance announced its withdrawal from Canada just weeks after the country issued a new set of regulations for cryptocurrency exchanges.
According to Reuters, Canada has tightened regulations on cryptocurrency trading platforms by introducing a pre-registration process. According to the Ontario Securities Commission website, companies that do not comply with the rules will face legal action.
Binance says new regulations regarding stablecoins and investor restrictions make the Canadian market unsuitable for Binance at this time.
The world’s largest cryptocurrency exchange is not happy with the new regulations and hopes to work with Canadian regulators to create a comprehensive framework for crypto operations
Binance CEO Changpeng Zhao left open the possibility that one-day Binance will return to the Canadian market when the situation changes.
The cryptocurrency industry is on the radar of regulators around the world, especially since the collapse of FTX in November 2022 caused a deep drop in the prices of the largest cryptocurrencies on the market. school
When the “crypto winter” began, the cryptocurrency market “evaporated” more than 1 trillion USD. Lawmakers and securities regulators have demanded stricter disclosure requirements for how crypto companies operate and hold customers’ funds.
In March, Binance and CEO Changpeng Zhao were sued by the US Commodity Futures Trading Commission (CFTC) for accusing Binance of being an “illegal” exchange and engaging in regulatory violations.
Previously, the OKX exchange withdrew from the Canadian market in March. By April, the decentralized exchange dYdX and the fintech company Paxos also “followed” in withdrawing from this market
