Binance will stop serving users from Canada

The company attributed the decision to new industry regulations

15.05.2023 - 08:30

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3 min

What’s new? On May 12, Binance representatives said that the exchange “will be joining other prominent crypto businesses in proactively withdrawing from the Canadian marketplace,” due to new industry standards. The team thanked local regulators for their cooperation and noted that despite its small market size, Canada has “sentimental value” for the exchange because it is the home of Binance founder Changpeng Zhao.

Unfortunately, today we are announcing that Binance will be joining other prominent crypto businesses in proactively withdrawing from the Canadian marketplace.We would like to thank those regulators who worked with us collaboratively to address the needs of Canadian users.… — Binance (@binance) May 12, 2023

What else is known? Exchange officials cited new rules for the regulation of stablecoins, as well as restrictions imposed on crypto investors on exchanges, as the main reason for the departure. Binance called these requirements unacceptable and said it had previously postponed the decision to exit in an effort to find reasonable ways to protect Canadian users.

Binance hopes to continue working with Canadian regulators to create a thoughtful and comprehensive regulatory framework. The exchange team said it hopes to return to Canada when local users once again have the freedom to access a wide range of digital assets.

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Cryptocurrency regulation in Canada. After the bankruptcy of the FTX exchange, the Canadian Securities Administrators (CSA) required crypto platforms to segregate client funds from their own and banned retail and institutional traders from offering margin trading and leverage. In January, the Crypto.com exchange delisted the USDT stablecoin for Canadian users, and in March the OKX platform suspended operations in the country.

On April 7, the dYdX exchange also announced it was ceasing operations in Canada. The company is hoping for a change in the regulatory climate that will allow it to resume services.

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