Veröffentlicht von • Binance, the world’s largest crypto exchange by trading volume, has announced its exit from Canada due to new guidance related to stablecoins and investor limits provided to crypto exchanges.
• The Canadian Securities Administrators (CSA) outlined new guidance in February that asked crypto trading platforms operating in the country to seek approval before allowing customers to use stablecoins on their platforms.
• Binance said it will continue to engage with regulators even if it doesn’t agree with the new guidance.
Binance Exits Canada
Binance, the world’s largest crypto exchange by trading volume, has announced its exit from Canada. The exchange revealed its move on Friday, noting that the decision was down to new guidelines that make the Canadian market “no longer tenable” for its operations.
New Guidelines
The Canadian Securities Administrators (CSA) outlined new guidance in February that asked crypto trading platforms operating in the country to seek approval before allowing customers to use stablecoins on their platforms. This included buying or depositing stablecoins, a requirement that meant further due diligence checks for exchanges amid tightening regulatory scrutiny.
Engagement With Regulators
While Binance does not agree with the new guidance, it hopes to continue engaging with Canadian regulators aimed at a thoughtful and comprehensive regulatory framework. It noted that it had “put off this decision as long as [it] could to explore other reasonable avenues to protect [its] Canadian users.”
Benefits of Regulatory Clarity
Binance is one of the main advocates of more regulatory clarity across the globe and has sought regulatory approval in most of the jurisdictions where it offers services. The exchange has actively been pushing for more clear-cut rules and regulations which would benefit both customers and companies alike.
Conclusion
Binance’s departure from Canada is just another example of how unclear regulations can have an adverse effect on businesses operating within a particular country or jurisdiction. However, despite its departure from Canada, Binance remains committed to engaging with regulators so as create an environment conducive for business activity in future markets around the world