Key Points:
- Binance, the biggest cryptocurrency trading platform in the world, is now leaving Canada.
- The exchange also said that the country’s guidelines restricted operations to the point of becoming unsustainable.
- In February, the Canadian Securities Administrators strengthened registration requirements for cryptocurrency exchanges.
Binance, a cryptocurrency exchange, has stated that it would discontinue operations in Canada, citing the difficult regulatory climate.
On Twitter, the corporation declared its intention to stop operations in the North American country.
Binance described the market as “untenable” due to new recommendations pertaining to stablecoins and investor limitations offered to crypto exchanges.
In recent months, Canada has tightened restrictions for crypto asset trading platforms by instituting a pre-registration procedure. Companies that do not follow the guidelines may face enforcement action, according to the Ontario Securities Commission’s website. As of 2022, Binance was already limited in Ontario.
The Canadian Securities Administrators (CSA) issued new recommendations in February prohibiting crypto asset trading platforms in the nation from enabling users to acquire or deposit stablecoins without prior clearance from the CSA. To get clearance, the crypto trading platform would have to satisfy the CSA’s extensive due diligence requirements.
Among these criteria are increased expectations for the custody and segregation of crypto assets held on behalf of Canadian customers, as well as a restriction on extending margin, credit, or other types of leverage to any Canadian client.
The cryptocurrency exchange claimed it waited as long as it could to quit the market in order to safeguard its Canadian consumers, but there was no way ahead.
Binance has been under heightened attention from North American authorities in the last year, and it looks to be scaling down activities in the area. Binance said earlier this year that it was contemplating cutting relations with its U.S. business partners.
According to the exchange, Canadian users will get an email with details on how their accounts will be impacted.
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Coincu News
Source: https://news.coincu.com/187008-binance-is-now-leaving-canada/