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May 14, 2023

Binance Decides To Leave Canada, Citing Regulatory Issues Related to Stablecoins and Investor Limits

By Mehron Rokhy

The world’s largest crypto exchange by volume says that it’s leaving Canada due to issues with the nation’s regulations on stablecoins and investor limits.

In a new announcement, Binance says that it will be joining other prominent crypto-focused firms and leaving the Canadian marketplace.

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According to Binance, Canada’s new regulatory measures that seek to protect investors render its marketplace “no longer tenable.”

“Today we are announcing that Binance will be joining other prominent crypto businesses in proactively withdrawing from the Canadian marketplace…

Unfortunately, new guidance related to stablecoins and investor limits provided to crypto exchanges makes the Canada market no longer tenable for Binance at this time. We put off this decision as long as we could to explore other reasonable avenues to protect our Canadian users, but it has become apparent that there are none.”

In February, the Canadian Securities Administration (CSA) created new guidelines indicating that the regulatory body may view stablecoins as securities and/or derivatives.

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Binance says it may one day return to Canada once more appropriate regulations are in place.

“While we do not agree with the new guidance, we hope to continue to engage with Canadian regulators aimed at a thoughtful, comprehensive regulatory framework. We are confident that we will someday return to the market when Canadian users once again have the freedom to access a broader suite of digital assets.”

Earlier this month, Bloomberg reported that the Justice Department is investigating Binance Holdings to see whether or not the firm’s crypto exchange violated sanctions against Russia.

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