Binance Quits Canada Citing Unfavorable Regulatory Climate

In a significant development affecting Canadian users, Binance, the world’s leading cryptocurrency exchange by trading volume, has declared that it will cease operations in the country.

A Surprise Exit

The exit came as a surprise to users and was announced in a tweet on Binance’s official Twitter handle. The exchange blamed new regulatory guidance as the primary reason to quit the Canadian Market. According to Binance, Canada passed recent rules related to stablecoins and investor limits for cryptocurrency operations. This, according to Binance, made it unviable to continue operations in the country. The exchange announced,

“Unfortunately, today we are announcing that Binance will be joining other prominent crypto businesses in proactively withdrawing from the Canadian marketplace.”

The exchange also thanked regulators that it worked with and added that the Canadian market held significant sentimental value for the exchange, given that it was its founder’s home country. Binance added,

“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.”

High Hopes

Binance added that the exchange had high hopes from the Canadian crypto and blockchain industry. It also added that it put off the decision to shutter its Canadian operations for as long as possible while trying to find other avenues to continue operations.

“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 Canadian 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.”

Major Crypto Players Retreating

Binance’s abrupt departure from the Canadian crypto space is in line with a recent trend of crypto firms shutting operations in jurisdictions that feature unfavorable regulatory

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Author: Amara Khatri

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