In short: Binance has announced on Twitter that it will close down its Canadian arm due to a recent amendment in the local legislation affecting stablecoin deposits and purchases on exchanges. The Canadian Securities Administrators decision in February has made it mandatory for local exchanges to seek its permission before accepting stablecoin deposits or allowing users to buy such assets. Binance has been expanding globally and has already received multiple licenses to operate in several countries.
Our quick analysis:
The world's biggest crypto trading platform, Binance, has announced that it will be exiting the Canadian market due to new regulations. The Canadian Securities Administrators (CSA) recently announced guidelines that require local exchanges to seek permission before allowing users to buy stablecoin assets or make stablecoin deposits. The process involves multiple due diligence tests, making it quite lengthy.
In a tweet, Binance expressed its disappointment in leaving a small yet "sentimental" market that it intended to keep working in. However, the new rules make it impossible to protect the interests of its Canadian users. Binance had been in the Canadian market for over two years, but the new guidelines leave them no option but to leave.
Canada has been relatively positive towards the crypto industry, with a few traditional financial institutions expressing interest. The country even approved one of the first spot Bitcoin ETFs a few years back. However, several exchanges, including Crypto.com, have been impacted by the CSA's recent policy change.
Binance has been on an expansion spree lately, receiving licenses to operate in Dubai, some European countries, Kazakhstan, and Japan.
The exit from the Canadian market might leave a sour taste in Binance's mouth, but it seems to be full steam ahead for the company's global expansion plans.
Image provided by Unsplash
Disclaimer: Our articles are NOT financial advice, and we are not financial advisors. Your investments are your own responsibility. Please do your own research and seek advice from a licensed financial advisor beforehand if needed.
Our quick analysis:
The world's biggest crypto trading platform, Binance, has announced that it will be exiting the Canadian market due to new regulations. The Canadian Securities Administrators (CSA) recently announced guidelines that require local exchanges to seek permission before allowing users to buy stablecoin assets or make stablecoin deposits. The process involves multiple due diligence tests, making it quite lengthy.
In a tweet, Binance expressed its disappointment in leaving a small yet "sentimental" market that it intended to keep working in. However, the new rules make it impossible to protect the interests of its Canadian users. Binance had been in the Canadian market for over two years, but the new guidelines leave them no option but to leave.
Canada has been relatively positive towards the crypto industry, with a few traditional financial institutions expressing interest. The country even approved one of the first spot Bitcoin ETFs a few years back. However, several exchanges, including Crypto.com, have been impacted by the CSA's recent policy change.
Binance has been on an expansion spree lately, receiving licenses to operate in Dubai, some European countries, Kazakhstan, and Japan.
The exit from the Canadian market might leave a sour taste in Binance's mouth, but it seems to be full steam ahead for the company's global expansion plans.
Image provided by Unsplash
Disclaimer: Our articles are NOT financial advice, and we are not financial advisors. Your investments are your own responsibility. Please do your own research and seek advice from a licensed financial advisor beforehand if needed.
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