Binance Announces to Withdraw from Canada Citing Regulatory Issues

Binance Announces to Withdraw from Canada Citing Regulatory Issues                

The largest cryptocurrency exchange in the world by trading volume, Binance, announced on Friday that it is "proactively withdrawing from the Canadian market." The company has thanked the regulators who worked with them and said the Canadian market was too "small."

The Regulatory Climate is Untenable for Digital Currency Businesses

The global cryptocurrency exchange Binance has decided to withdraw from Canada. The company cited regulatory guidance as the primary reason for its decision to withdraw, although it was the home country of the company’s founder. Binance claims that the new regulatory climate in Canada does not make the digital currency business in the country tenable.

"Unfortunately, today we are announcing that Binance will be joining other prominent crypto businesses in proactively withdrawing from the Canadian marketplace," Binance tweeted on Friday. The social media account of the trading platform added:

"Unfortunately, the new guidance related to stablecoins and investor limits provided to crypto exchanges makes the Canadian market no longer tenable for Binance. 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."

Many users believe that recent international developments could have influenced the exit decision. The UK court set aside an interim proprietary injunction against Binance. The court has ordered Binance to set aside an amount of cryptocurrency after a victim of fraud claimed to have traced the stolen funds to the exchange. Another report last week said Binance was being probed by the US Department of Justice (DOJ) over alleged Russian sanction violations. 

Binance to Notify Canadian Users via Email

Binance announced on Friday that Canadian users will receive an email containing details about their accounts and how they will be affected in the future. Despite the regulatory climate on stablecoins and investor limits, the exchange has expressed its willingness to collaborate and communicate with Canadian regulators.

Binance has stated that, although it does not necessarily agree with the current regulations, it remains open to working towards a solution. The exchange concluded that it remains optimistic that a thoughtful framework will be in place in the future and pave the way for Binance to resume its services in the country.

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