Leading crypto exchange Binance in a Friday tweet, announced it had withdrawn operations in Canada, citing unfavorable new regulatory guidelines introduced by the state. Although the exchange expressed regret for the exit, it noted that the newly introduced laws on stablecoin and investor limits were the bone of contention leading to the departure.
“Unfortunately, today we are announcing that Binance will be joining other prominent crypto businesses in proactively withdrawing from the Canadian marketplace. We had high hopes for the rest of the Canadian blockchain industry. Unfortunately, new guidelines related to stablecoins and investor limits provided to crypto exchanges make the Canada market no longer tenable for Binance at this time,” Binance tweeted.
The engendering regulation on stablecoins was brought forward by the Canadian Securities Administration (CSA) in February. According to the guideline, crypto exchanges would segregate assets belonging to Canada’s natives and seek permission from the regulator before selling stablecoins.
Binance Keeps Doors Open
The exchange in the announcement tweet noted that it would still want to re-enter Canada in the future when the country sorts out impending regulatory hitches. It said it would continue to hold talks with the country’s regulator to ensure that it establishes a well-worked regulatory framework.
Binance highlighted the country’s unique connections with the exchange because its founder and chief executive officer, Changpeng Zhao, is from Canada. The crypto firm also revealed it delayed the exodus, hoping to reach common ground with the CSA but never got there.
More Exits?
Although Binance is the first firm to announce its exit, the announcement suggests other top exchanges will follow suit. According to the tweet, Binance stated that it is joining other “prominent crypto businesses” to withdraw services in Canada.
The coming days will reveal which other crypto firm is exiting the North American country. Binance assured users based in Canada that they would receive emails comprehensively explaining how the withdrawal would impact their accounts.
