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Exchange News- New rules by the CSA prohibits firms from enabling Canadian clients to enter into crypto contracts.
- North American regulators have heightened their scrutiny of Binance over the past year.
Binance has opted to withdraw from Canada amid the implementation of a set of fresh guidelines for cryptocurrency exchanges. The regulations impose limits on investors and require exchanges to register with authorities. In recent months, Canada has implemented stricter regulations for trading platforms dealing with crypto assets. This includes the introduction of a pre-registration procedure.
Unfortunately, today we are announcing that Binance will be joining other prominent crypto businesses in proactively withdrawing from the Canadian marketplace.
We would like to thank those regulators who worked with us collaboratively to address the needs of Canadian users.…
— Binance (@binance) May 12, 2023
In response to the rules introduced by the Canadian Securities Administrators (CSA) on February 22, which included the requirement for pre-registration undertakings and increased restrictions, Binance is following the lead of some of its smaller competitors and exiting the Canadian market.
With the implementation of the new regulations from the CSA, companies are now prevented from facilitating the trading of crypto contracts involving any crypto asset that is classified as a security or derivative for Canadian clients, and stablecoins are now regarded as securities.
Despite its disagreement with the new regulations, Binance expressed its desire to work alongside Canadian regulators to develop a comprehensive regulatory framework for cryptocurrencies in a tweet released on Friday.
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Source: https://thenewscrypto.com/binance-departs-from-canada-following-new-crypto-regulations/