Binance withdrawing from Canada over new regulations

The crypto platform cites the authorities severing the life of its crypto business.

Binance Holdings announced on 12 May 2023 its exit from the Canadian market in connection with the authorities’ new guidance affecting investors’ transactions with stablecoins. 

The world’s largest crypto exchange by volume of transactions said in a Tweet that the new guidance from the Canadian Securities Administration (CSA) since February this year made the Canada “no longer tenable for Binance at this time.” 

Crypto exchange Binance has announced that it would cease operations in Canada, citing the challenging regulatory environment.

The CSA Staff Notice 21-332 Crypto Asset Trading prohibits crypto asset trading platform within the country from allowing customers to buy or deposit stablecoins without the CSA’s prior approval, which means the exchange would have to apply for diligence checks for such operations. 

Binance disagreed with the new regulations, but added that it remained open to collaborate with the Canadian authorities regarding the development of a proper regulatory framework for cryptocurrencies.

It also said the Canadian would be notified by email how the measure would impact their accounts going forward.

A spokesperson for the Canadian Blockchain Association said in connection with Binance’s decision: “It is unfortunate to see Binance leave the Canadian market. But we understand their decision.”

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Last year, Binance was at odds with the US government over a series of investigations by the Securities and Exchange Commission, Commodity Futures Trading Commission, Justice Department, and the Internal Revenue Service. It agreed to pay a 30-million-dollar fine without challenging it and severed ties with American banks amid allegations of violations of tax and anti-laundering laws.

Binance Holdings was established in 2017 by Changpeng Zhao, a Chinese-born Canadian businessman, investor, and software engineer.