Binance will quit the Canadian market in September
The cryptocurrency exchange announced that it will officially leave the Canadian market as of September 30
Binance announced its exit from the Canadian market due to new guidelines imposed by the country’s regulators that continue to impact the cryptocurrency sector. Calling its withdrawal “proactive,” the cryptocurrency exchange joins other smaller competitors that also left Canada due to restrictions imposed by the Canadian Securities Administrators (CSA) on February 22.
Although Binance submitted a pre-registration commitment, they explained in a tweet: “Unfortunately, the new stablecoin-related guidelines and investor limits provided to cryptocurrency exchanges make the Canada market no longer sustainable for Binance in this moment”. The new CSA rules prohibit companies from allowing Canadian customers to enter into crypto contracts to buy and sell any crypto asset that is itself a security and/or derivative, defining stablecoins as a security.
The exchange sent an email to its Canadian users, informing them that they must close their open positions by September 30, 2023. As of October 1, 2023, Canadian clients will only be able to liquidate. Despite disagreeing with the new guidelines, Binance looks forward to working with Canadian regulators to establish a thoughtful and comprehensive regulatory framework.
Binance’s departure follows the withdrawal of other prominent players from the Canadian cryptocurrency market, including OKX in March, decentralized exchange dYdX in April, and blockchain fintech Paxos. However, cryptocurrency enthusiasts in Canada still have options, as Kraken submitted a new pre-registration commitment in March and has stated its intention to remain in the country. The CSA has authorized 11 platforms to conduct operations with Canadian citizens.
(Reference image source: sebastiaan stam, Unsplash)
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