Citing new stablecoin guidelines and investor-level limits in its crypto trading platform, Binance announced its departure from Canada.
A key North American market, Binance says it has no choice but to pull out of Canada in hopes of returning there later.
An announcement that momentarily caused the Bitcoin price to drop below $26,000, click here to follow the BTC price in real time.
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. Albeit a small market, it held sentimental value for us as the home country of our founder.
We had high hopes for the rest of the Canadian blockchain industry. 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.
Our remaining Canadian users are receiving an email with comprehensive information on how this will impact their accounts going forward. 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.
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
In its press release, Binance says that its Canadian customers will receive a message by email to inform them and accompany them in closing their account to withdraw their funds.
This decision by Binance illustrates the regulatory uncertainty that reigns in the crypto sector in Canada or the United States where the regulator SEC (Securities and Exchange Commission) has already sued many crypto companies such as Beaxy, Bittrex, Kraken, or Nexo.
Faced with these difficulties, Binance therefore chose to withdraw from the Canadian market to certainly return to it later, as it was able to do in Japan by buying a crypto exchange already regulated in the country.
Canadians still can use Kraken exchange: click here to learn more about Kraken in Canada.
