Binance, one of the world’s largest cryptocurrency exchanges, announced that it is withdrawing from the Canadian market due to new stablecoin and investor limits in Canada. Behind this decision are the strict rules taken in the country.
Binance, one of the world’s largest cryptocurrency exchanges, announced that it was withdrawing from the Canadian market due to new stablecoin and investor limits in Canada. Behind this decision are the strict rules taken in the country.
In February, Canadian Securities Administrators (CSA) released new guidance giving them 30 days to sign up or leave crypto trading platforms operating in the region. Crypto firms that decide to sign up and stay have to follow stricter rules, such as getting the CSA’s approval before allowing users to buy or deposit stablecoins.
Binance will have to go through the authorities’ due diligence checks before getting approval. The crypto exchange has been under intense scrutiny in North America in recent years. In the US, the Department of Justice and the Internal Revenue Service are examining reports that Binance has been used in money laundering schemes since 2021. It is also reportedly under investigation for allowing users to circumvent sanctions against Russian financial institutions. In March of this year, the Commodity Futures Trading Commission accused Binance of allegedly offering unregistered crypto derivatives, among other things.
The company announced in its announcement:
They said they were delaying the decision “so long as they can explore other reasonable ways to protect their Canadian users.”
With the recent decisions taken, Binance has decided that it is “no longer tenable” to continue its operations in the country. After this decision, it is very curious how other countries will follow against crypto money platforms.
Source: Egirisim / Prepared by Irem Yildiz