binance said Friday it was pulling out of Canada, weeks after issuing a series of new guidelines for the country cryptocurrency Exchanges including investor limits and mandatory registration.
Canada has made strict rules for this crypto assets trading platform in recent months with the start of the pre-registration process. According to the Ontario Securities Commission website, companies that do not comply with the rules will face possible enforcement action.
“Unfortunately, (a) new guidance regarding stablecoins and investor limits provided to crypto exchanges does not make the Canadian market suitable for Binance at this time,” crypto exchange Binance said in a tweet.
Binance said it disagrees with the latest guidance and looks forward to engaging with Canadian regulators to develop a comprehensive framework. crypto Operation in the country.
“We believe we will return to the market someday, when Canadian users once again have the freedom to access a broad suite of digital assets,” said the crypto exchange founded by Canadian citizen Changpeng Zhao.
The digital asset industry has been in the crosshairs of regulators around the world, especially since the collapse of Binance-rival FTX in November, which triggered a market slide in prices of the largest digital coins.
Following the onset of the crypto winter of 2022, which wiped off more than a trillion dollars from the industry’s market value, lawmakers and securities regulators sought stricter guidelines for crypto companies to disclose how they operate and hold customer funds.
In March, Binance and its CEO Zhao were sued by the US Commodity Futures Trading Commission for operating what the regulator alleged was an “illegal” exchange and a “sham” compliance program.
© Thomson Reuters 2023