Binance made an announcement on Friday regarding pulling out its services from the Canadian market. As per their statement on Twitter, Binance stated two significant reasons behind their decision to leave – Canada’s new guidelines concerning stablecoins and investor restrictions applicable to crypto exchanges.
The announcement mentioned that Binance is no longer viable in Canada due to these guidelines and is proactively following other distinguished crypto organizations in the industry.
Several cryptocurrency companies, including OKX, Paxos, and dYdX, have left Canada due to the country’s regulatory environment. Bittrex also withdrew from Canada last year, citing regulatory constraints.
The Canadian Securities Administrators recently mandated that crypto asset trading platforms register with them by March 23, leading to Binance’s withdrawal. If trading firms miss the registration deadline, they must stop their operations as they failed to fulfill the “pre-registration requirements.”
Moreover, the Canadian agency instructed exchanges to uphold segregation in crypto custody, designate a chief compliance officer, and halt the purchase and retention of stablecoins.
Binance claimed it postponed the decision for as long as possible but ultimately concluded that no options were available. Per the tweet, Binance is confident it will return to the market when Canadian users regain access to a broader range of digital assets.
Canadian Binance customers will be emailed comprehensive details regarding the impact on their accounts going forward.