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Binance Shuts Down Services in Canada Amid Regulatory Challenges

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Following ongoing regulatory issues within the country, Binance has decided to effectively withdraw from the Canadian market.

On Friday evening, the cryptocurrency exchange announced that it will begin terminating its services to Canadian users. Blaming new government guidelines provided to exchanges, Binance said the Canadian market was no longer tenable.

Canadian Guidelines Not Crypto-Friendly

The statement said that Binance hopes to engage in a dialogue with Canadian regulators going forward. It added that:

“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.”

The guidelines in question were issued by the Canadian Securities Administrators (CSA) in February. Posited as investor protection provisions following a run of crypto sector insolvencies in 2022. The guidelines target offshore companies like Binance that service Canadian clients.

Among other commitments, the CSA required crypto exchanges to segregate crypto assets held for local clients. It also imposed a ban on margin or other forms of leverage. Also, a ban on selling stablecoins without the regulator’s permission.

In Friday’s tweet, Binance argued that the new guidance imposed too heavy a burden on the company, especially the limits on stablecoin sales. Canadian users of the platform will further details about how this will impact their accounts by email, the tweet said.

Binance Turns Its Back on Canada

The decision to exit the Canadian market appears to have been especially difficult for Binance.

Although it represents one of the firm’s smaller markets, Binance said that Canada “held sentimental value for us as the home country of our founder.” Born in China, Binance’s co-founder and CEO Go to Source to See Full Article
Author: James Morales

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