Binance, one of the world’s largest cryptocurrency exchanges, announced on May 12, 2023, that it would be withdrawing from the Canadian marketplace, citing the “proactive” decision` was as a result of the new Canadian regulator guidance related to stablecoins and investors has affected the country’s cryptocurrency industry.
This decision comes after regulatory scrutiny in Canada, where the Canadian Securities Administrators (CSA) introduced on February 22 requiring all cryptocurrency exchanges operating in the country to register with the regulatory authority. Binance is joining OKX, Paxos and Dydx in leaving Canada.
The new CSA rules prohibit crypto companies from allowing Canadian clients to enter into crypto contracts to buy and sell any crypto asset. One of the rules also prohibits crypto asset trading platforms (CTP) from providing any Canadian client with credit, margin or any type of leverage.
Binance stated that the decision to leave Canada was delayed till when it was announced to see if there might be other, reasonable regulations for its Canadian users, “but it is now clear that there are none.”
“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.”
Binance was in operation in all Canadian provinces and territories with the exception of Ontario, where it ceased operation in March 2022 following a protracted dispute with the province’s authorities.
In March, OKX left the Canadian market followed by dYdX and blockchain fintech Paxos in April. What is happening in Canada is similar to the US where a hostile regulatory environment is pushing players like Coinbase, Gemini out to other jurisdictions that are friendly.