SAN FRANCISCO — Leading blockchain and cryptocurrency platform Binance has announced its exit from the Canadian marketplace due to new stablecoin and investor limits in the country.
"We are announcing that Binance will be joining other prominent crypto businesses in proactively withdrawing from the Canadian marketplace," the company said in a tweet.
Leading #Blockchain and #Cryptocurrency platform #Binance has announced its exit from the #Canadian marketplace due to new stablecoin and investor limits in the country. pic.twitter.com/JHYz30pt0i
— IANS (@ians_india) May 15, 2023
"We had high hopes for the rest of the Canadian blockchain industry. Unfortunately, new guidance related to stablecoins and investor limits provided to crypto exchanges makes the Canada market no longer tenable for Binance at this time," it added.
The cryptocurrency platform also stated that while it does not agree with the new regulations, it hopes to continue working with Canadian regulators to develop a regulatory framework for cryptocurrencies.
[bsa_pro_ad_space id=1]According to CoinDesk, the Canadian Securities Administrators (CSA) issued new guidance in February prohibiting crypto asset trading platforms in the country from allowing customers to buy or deposit stablecoins without prior approval from the CSA.
To obtain approval, the crypto trading platform would have to pass the CSA's various due diligence checks.
In March, the US Commodity Futures and Trading Commission (CFTC) sued Binance for allegedly breaking trading and derivatives rules, media reports said.
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Along with Binance, the CFTC sued the company's CEO Changpeng Zhao, and Chief Compliance Officer Samuel Lim, reports TechCrunch.
According to the filing, the exchange has never registered with the CFTC and has "disregarded federal laws" that govern US financial markets, including laws designed to prevent and detect money laundering and terrorism financing.