Binance, the world’s largest cryptocurrency exchange by trading volume, announced on Friday that it would withdraw from the Canadian market, citing new regulations introduced by the country’s regulators as the reason for its decision. The move comes after Canada issued new guidelines for cryptocurrency exchanges, including investor restrictions and registration requirements.
Binance, the world’s largest cryptocurrency exchange by trading volume, announced on Friday that it would withdraw from the Canadian market, citing new regulations introduced by the country’s regulators as the reason for its decision.
The move comes after Canada issued new guidelines for cryptocurrency exchanges, including investor restrictions and mandatory registration. According to the Ontario Securities Commission, companies that fail to comply with the rules will face potential enforcement action.
Binance, which Canadian national Changpeng Zhao established, said it did not concur with the most recent direction and trusted to lock in with Canadian controllers to form a comprehensive system for crypto operations in the country.
Binance aims to work with regulators for the better crypto framework
“We are certain that we are going, at some point within the not-so-distant future, return to promoting when Canadian clients once more have the adaptability to urge to a broader suite of advanced resources,” Binance said in an explanation.
The decision by Binance to withdraw from Canada is a blow to the country’s growing cryptocurrency industry, which has been attracting a growing number of investors and entrepreneurs in recent years.
Canada has been seen as a relatively friendly jurisdiction for cryptocurrency companies, with several high-profile firms, including Coinsquare and Bitbuy, based in the country.
However, the Canadian government has been tightening its regulations for the sector in recent months, following the collapse of Binance-rival FTX in November, which triggered a market rout in the prices of the most prominent digital coins.
Taking after the onset of the crypto winter of 2022, which wiped out more than a trillion dollars from the industry’s advertise esteem, officials and security controllers requested more strict rules for revelations on how the crypto companies work and hold client reserves.
Withdrawal shows regulatory pressure faced by the crypto industry.
In March, Binance and its CEO Zhao were sued by the U.S. Product Prospects Exchanging Commission for working in what the controller charged was an “unlawful” trade and a “pretence” compliance program.
The move by Binance to withdraw from Canada is unlikely to be it’s last. The company has faced regulatory pressure from governments around the world, with several countries, including the UK, Japan, and Germany, issuing warnings to the exchange over its activities.
Despite the regulatory headwinds, Binance has continued to expand its operations, launching new products and services, including a decentralized exchange and a non-fungible token (NFT) marketplace.
The company has also been working to improve its compliance efforts, hiring former US Treasury official Brian Brooks as CEO of its US division and launching a self-regulatory body, the Crypto Council for Innovation, in April.
However, the withdrawal from Canada shows that even the biggest players in the industry are not immune to the growing regulatory scrutiny. As the crypto market continues to evolve, it is likely that more companies will face increased pressure from regulators, and that the regulatory landscape will become even more complex and challenging.