New Stablecoin Regulations Impact Binance
Binance cited recent guidance from the Canadian Securities Administrators (CSA) regarding stablecoins and investor limits as the primary reason for its exit. The new regulations make it difficult for Binance to continue operating in the Canadian market.
CSA Introduces Strict Crypto Trading Rules
In February, the CSA issued new guidance prohibiting crypto asset trading platforms from allowing customers to buy or deposit stablecoins without prior approval. To obtain approval, platforms must pass various due diligence checks by the CSA.
Binance Disagrees but Hopes for Future Collaboration
Although Binance disagrees with the new regulations, the company expressed its hope to work with Canadian regulators in the future. Binance aims to help develop a regulatory framework around cryptocurrencies that is more conducive to its operations.
BREAKING: Binance, a leading cryptocurrency exchange, has announced the closure of its operations in Canada.
— Paryte (@Parytecom) May 12, 2023
Binance Faces Increased Scrutiny in North America
Over the past year, Binance has experienced heightened scrutiny from North American regulators, leading to the company winding down operations in the region. Binance is also considering cutting ties with its U.S. business partners.
CEO's Canadian Citizenship Adds Sentimental Value
Binance CEO Changpeng Zhao, who is a Canadian citizen, described the company's exit from Canada as holding "sentimental value."
