Cryptocurrency exchange Binance announced via Twitter on May 12 that it is ceasing operations in Canada. The decision is a “proactive” response to the new regulatory guidelines enforced by Canadian authorities, which are significantly impacting the nation’s cryptocurrency sector.
This move makes Binance the latest among several other cryptocurrency entities to exit Canada, following the implementation of new rules by the Canadian Securities Administrators (CSA) on February 22. These rules mandate that all crypto firms must submit new preregistration undertakings and comply with additional restrictions.
Despite having reportedly submitted a new preregistration undertaking, Binance clarified in a tweet: “Regrettably, new guidelines related to stablecoins and investor limits on crypto exchanges make it untenable for Binance to continue operations in the Canadian market at this time.”
The newly introduced CSA rules forbid companies from allowing Canadian clients to enter into contracts to purchase and sell any crypto asset classified as a security and/or a derivative, and they categorize stablecoins as securities.
Previous to Binance’s announcement, OKX exited the Canadian market in March, followed by decentralized exchange dYdX in April and blockchain fintech Paxos afterward.
An email from Binance to its Canadian users, as seen by Cointelegraph, asked them to settle their open positions by September 30, 2023. It cautioned that, “Starting October 1, 2023, Canadian customers will be transitioned to liquidation only mode.”
Binance further stated: “Although we disagree with the new guidelines, we intend to remain in dialogue with Canadian regulators in the hope of establishing a comprehensive, thoughtful regulatory framework.”
Binance had previously been operating in all Canadian provinces and territories, except Ontario. It had withdrawn from this province in March 2022, following an extended dispute with its regulatory authorities.
However, not all is doom and gloom for Canadian crypto enthusiasts. Kraken, another major player in the space, submitted a new preregistration undertaking in March and has pledged to maintain its operations in Canada. According to the CSA, there are 11 platforms “Authorized to Do Business with Canadians.”
