Binance announced it was leaving Canada just weeks after the government introduced strict new regulations for cryptocurrency exchanges, such as mandatory registrations and limits on who can be an investor.
In recent months, Canada has implemented a pre-registration process for crypto asset trading platforms, further tightening the country’s regulatory framework. According to the website of the Ontario Securities Commission, enforcement action may be taken against companies that do not follow the laws.
“Unfortunately, (the) 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 cryptocurrency exchange stated in a tweet.
Binance has stated that it disagrees with the current guidance and wants to collaborate with Canadian regulators to establish a uniform framework for all cryptocurrency activities within the nation.
Binance might be in hot water due to the decision
The cryptocurrency exchange, which was created by a Canadian citizen named Changpeng Zhao, has stated that it plans to return to the market once Canadian users are once again free to access a wider range of digital assets.
Since the demise of Binance’s rival FTX in November, which caused a market rout in the prices of the main digital coins, the digital assets industry has been under scrutiny from regulators around the world.
Legislators and securities regulators called for stricter requirements for disclosures on how the crypto businesses operate and hold consumer cash after the crypto winter of 2022 wiped out more than a trillion dollars from the industry’s market capitalization.
A lawsuit was filed against Binance and its CEO Zhao by the US Commodity Futures Trading Commission in March. The CFTC claimed that Binance ran a “illegal” exchange and a “sham” compliance program.
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