Binance Says Farewell to Canada Following New Guidance Implementing Restrictions on Exchanges

Binance Canada Regulation

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October 23, 2023 06:51 EDT

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Binance is pulling out of Canada.

The world’s largest crypto exchange said on Twitter that it was withdrawing from the country due to new guidance about stablecoins and limits to investors.

“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,” the company said.

Binance CEO Changpeng Zhao, who is a Canadian citizen, retweeted the news.

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

“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,” the exchange said.

New requirements in Canada

The Canadian Securities Administrators tightened registration requirements for crypto exchanges in February.

Some of those requirements include “enhanced expectations regarding the custody and segregation of crypto assets held on behalf of Canadian clients and a prohibition on offering margin, credit, or other forms of leverage to any Canadian client.”

Another requirement blocks the platforms from “permitting clients to purchase or deposit value-referenced crypto assets (commonly referred to as stablecoins).”

What’s next

Canadian users will receive information about how the move will impact their accounts, the exchange said.

“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.”