Binance has announced its decision to cease operations in Canada due to the challenging regulatory environment. In a tweet, the company expressed its disappointment, stating that new guidance related to stablecoins and investor limits provided to crypto exchanges has made the Canadian market no longer tenable for Binance.
Unfortunately, today we are announcing that Binance will be joining other prominent crypto businesses in proactively withdrawing from the Canadian marketplace.
We would like to thank those regulators who worked with us collaboratively to address the needs of Canadian users.…
— Binance (@binance) May 12, 2023
In February, the Canadian Securities Administrators (CSA) revealed new guidance prohibiting crypto asset trading platforms within the country from allowing customers to buy or deposit stablecoins without the CSA’s prior approval. Binance disagrees with the new regulations but still hopes to work with Canadian regulators to develop a regulatory framework around cryptocurrencies.
Binance has faced increased regulatory scrutiny from North American regulators over the past year and appears to be winding down operations in the region. The company has also considered severing ties with its US business partners earlier this year.
Binance co-founder and CEO Changpeng Zhao is a Canadian citizen, and the company’s exit from the country holds sentimental value. CoinDesk reported in late March that Binance was likely to exit Canada, while rival Coinbase was in talks to continue operations in that country.