News - Binance turns its back on Canada

By Mike Hesp

Binance turns its back on Canada

Laws and regulations

It's the next setback for Binance in North America. The crypto exchange is turning its back on Canada. Here are the reasons.

Binance is closing its doors in Canada indefinitely. The company announced this Friday night in a tweet. Due to regulations, continued operations were "no longer justifiable," the notice said. Canadian users are expected to receive "detailed information" about the continuation of their accounts in the coming days.

Eind februari sharpness the Canadian Securities Administration (CSA) tightened regulations for cryptocurrency service providers. Among other things, the regulator required binding proof of separation of customer and business assets and banned margin trading. In addition, the authority banned stablecoin trading, although exceptions were possible in consultation with the CSA. Binance rejects the new rules, the tweet continues. Which ones exactly the crypto exchange does not explain.

From the company's perspective, the departure hardly matters, as the trading center does only a fraction of its business through Canada. As the home country of Binance CEO Changpeng Zhao, the emotional damage will probably hurt him the most. That is probably why the exchange wants to maintain cooperation with authorities to return in the future.

Always trouble with the Americans

It is the next setback the crypto exchange has to accept in North America. So far, Binance has been under constant regulatory fire, especially in the US. First, the Securities and Exchange Commission (SEC) launched an all-out attack on Paxos in late February, burying Binance's stablecoin BUSD. A month later, the CFTC followed suit and that the trading platform sued for violating applicable federal laws. The crypto exchange allegedly allowed U.S. citizens to trade derivatives despite a ban.

Due to regulations in the U.S., Binance put the Voyager deal shelved at the end of April. Actually, the US offshoot of the crypto exchange wanted to take over the assets of the insolvent lending service. The deal had already been approved by the courts. However, due to regulatory uncertainties in the United States, Binance pulled out at the last second.

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