Binance, the biggest cryptocurrency exchange worldwide, has decided to leave Canada. They made this decision because of new rules about stablecoins (a type of cryptocurrency tied to a stable asset) and limits on how much investors can participate.
Binance, a crypto exchange, has said it will stop working in Canada because the rules and regulations there make it difficult for them to operate.
In a tweet on Friday, Binance expressed disappointment and stated that they had hoped for a promising future for the blockchain industry in Canada. However, due to new guidelines regarding stablecoins and limits on investor participation given to crypto exchanges, Binance cannot continue its operations in the Canadian market for now.
In February, the Canadian Securities Administrators (CSA) introduced new guidelines that prevented crypto trading platforms in Canada from allowing customers to purchase or deposit stablecoins without getting approval from the CSA beforehand. To obtain approval, the crypto trading platform would need to pass several checks conducted by the CSA to ensure compliance with regulations.
In their tweet on Friday, Binance mentioned that they don’t agree with the new regulations but expressed their desire to collaborate with Canadian regulators. They hope to work together to create a better set of rules and guidelines for cryptocurrencies in the future.
In the past year, Binance has faced more attention and investigation from regulators in North America. As a result, it seems that Binance is reducing its activities in the region. Earlier this year, Binance mentioned the possibility of ending its partnerships with business entities in the United States.
Binance’s CEO and co-founder, Changpeng Zhao (“CZ”), is a citizen of Canada, and the company stated that leaving the country holds emotional significance for them.