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Binance Halts Operations in Canada Due to Regulatory Pressure

Binance, the world's largest cryptocurrency exchange by volume, has announced its decision to halt operations in Canada. The company attributes this move to the challenging regulatory environment within the country.

Flag of Canada
Flag of Canada

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.

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."