Canadians will no longer have access to the largest cryptocurrency exchange in the world. Binance has announced that it’s withdrawing from the Canadian marketplace due to new stablecoin and investor limits in the country. Back in February, the Canadian Securities Administrators (CSA) released new guidance that gives crypto trading platforms operating in the region 30 days to register or to leave. The crypto firms that decide to register and stay will have to adhere to stricter rules, such as seeking the CSA’s approval before allowing users to buy or deposit stablecoins.
According to CoinDesk, Binance will have to pass authorities’ due diligence checks before it gets approval. The crypto exchange has been under intense scrutiny in North America over the past years. In the US, the DOJ and the Internal Revenue Service have been looking into reports that Binance is being used for money laundering schemes since 2021. It’s also reportedly under investigation for allowing users to bypass sanctions against Russian financial institutions. In March this year, the Commodity Futures Trading Commission charged Binance for allegedly offering unregistered crypto derivatives, among other things.
In its announcement, Binance said it put off the decision as long as it could “to explore other reasonable avenues to protect [its] Canadian users.” Indeed, Bloomberg says its Canadian affiliate filed paperwork to begin its registration process in March. But in the end, it had decided that continuing its operations in the country is “no longer tenable.”
Binance ended its announcement with a note saying it’s confident it will return to Canada, it’s CEO Changpeng Zhao’s home country, someday. It also said it hopes to continue engaging with Canadian authorities when it comes to forming a “thoughtful, comprehensive regulatory framework.”
Unfortunately, today we are announcing that Binance will be joining other prominent crypto businesses in proactively withdrawing from the Canadian marketplace.
We would like to thank those regulators who worked with us collaboratively to address the needs of Canadian users.…
— Binance (@binance) May 12, 2023