Binance Ceases Operations in Canada Due to Regulatory Concerns

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Leading cryptocurrency exchange Binance announced its exit from the Canadian market on Twitter on May 12. 

Binance Withdraws Due to New Crypto Rules

It described its decision to withdraw as “proactive” as fresh guidelines released by Canadian authorities tend to have an impact on the country’s crypto business.

Binance is following some of its lesser-known rivals in the Canadian departure caused by the Canadian Securities Administrators’ (CSA) Feb. 22 implementation of laws requiring them to register new preregistration undertakings and comply with additional limitations.

Submission of a PRU

Despite the fact that Binance has apparently submitted a new preregistration undertaking (PRU), the company said in a tweet, “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.”

Stablecoins are defined as a security under the new CSA rules, which ban organizations 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.”

Email Sent to Binance Customers with Updates

Binance issued an email to its Canadian users instructing them to terminate any open holdings before September 30, 2023. It stated that “from October 1st, 2023, Canadian customers will be put into liquidation only mode,” while further adding: 

“While we do not agree with the new guidance, we hope to continue to engage with Canadian regulators aimed at a thoughtful, comprehensive regulatory framework.”

Early Withdrawal from Ontario

With the exception of Ontario, where it withdrew in March 2022 following a protracted dispute with the province’s authorities, the crypto exchange was active in all of Canada’s provinces and territories. 

The accord effectively concluded a controversy that began in June 2021, when Binance announced that it would no longer service Ontario accounts and advised customers to liquidate current holdings by the conclusion of the year.

Furthermore, the firm has revealed that cryptocurrency limitations have made running a company in the United States tough. As a result, it is now looking for regulation in the United Kingdom.

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