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Binance will withdraw from the Canadian market, the cryptocurrency exchange announced on Twitter on May 12. It called its withdrawal \u201cproactive\u201d as new guidance issued by Canadian regulators continues to take a toll on the country\u2019s crypto industry.<\/p>\n
Binance is joining some of its smaller competitors in the Canadian exodus brought on by the introduction<\/a> of rules by the Canadian Securities Administrators (CSA) on Feb. 22 that required them to file new preregistration undertakings and adhere to added restrictions. <\/p>\n Although Binance had reportedly filed<\/a> a new preregistration undertaking, it explained<\/a> in a tweet:<\/p>\n \u201cUnfortunately, new guidance related to stablecoins and investor limits provided to crypto exchanges makes the Canada market no longer tenable for Binance at this time.\u201d<\/p><\/blockquote>\n The new CSA rules prohibited<\/a> firms “from permitting Canadian clients to enter into crypto contracts to buy and sell any crypto asset that is itself a security and\/or a derivative,\u201d and defined stablecoins as a security.<\/p>\n Unfortunately, today we are announcing that Binance will be joining other prominent crypto businesses in proactively withdrawing from the Canadian marketplace.<\/p>\n We would like to thank those regulators who worked with us collaboratively to address the needs of Canadian users.\u2026<\/p>\n \u2014 Binance (@binance) May 12, 2023<\/a><\/p><\/blockquote>\n OKX pulled out of the Canadian market<\/a> in March. It was followed in April<\/a> by decentralized exchange dYdX and then by blockchain fintech<\/a> Paxos. <\/p>\n Related: Canada\u2019s central bank asks citizens what they want in a digital dollar<\/a><\/em><\/strong><\/p>\n Binance sent its Canadian users an email, seen by Cointelegraph, that instructed them to close their open positions by Sept. 30, 2023. \u201cFrom October 1st, 2023, Canadian customers will be put into liquidation only mode,\u201d it warned. The exchange added:<\/p>\n \u201cWhile we do not agree with the new guidance, we hope to continue to engage with Canadian regulators aimed at a thoughtful, comprehensive regulatory framework.\u201d<\/p><\/blockquote>\n Binance operated in all Canadian provinces and territories except Ontario, which it withdrew from in March 2022<\/a> after a protracted disagreement with that province\u2019s regulators. <\/p>\n All is not lost for Canadian cryptophiles, however. Kraken filed the new preregistration undertaking in March and stated its commitment to staying in Canada. The CSA lists<\/a> 11 platforms \u201cAuthorized to Do Business with Canadians.\u201d<\/p>\n Magazine: Your guide to crypto in Toronto: Crypto City<\/a><\/em><\/strong><\/p>\n <\/p>\n<\/div>\n\n