Binance to Close Canadian Shop: Regulatory Changes Impact Crypto Exchange

Von | 14. Mai 2023

• Binance, the world’s largest crypto trading platform, announced its intentions to wind down its Canadian arm two years after being greenlighted to operate in the country.
• The decision is due to a recent amendment in the local legislation that affects stablecoin deposits and purchases on exchanges.
• Canada’s overall approach to crypto has been relatively positive with a few traditional financial institutions investing in the industry.

Binance Shuts Down Canadian Shop

Binance, the world’s largest crypto trading platform, announced its intentions to wind down its Canadian arm two years after being given approval to operate in the country. The decision was made due to a recent amendment in the local legislation that affects stablecoin deposits and purchases on exchanges.

Recent Regulatory Change

The Canadian Securities Administrators (CSA) announced new guidelines that makes it mandatory for local exchanges to seek permission before accepting stablecoin deposits or allowing users buy such assets. The watchdog has multiple due diligence tests in place making the process lengthy.

Delayed Departure

Binance mentioned that it tried to delay their departure from Canada for as long as possible since it was a small but „sentimental“ market they intended on keeping running. Despite their efforts, they were unable to find any other reasonable avenues which led them ultimately deciding close up shop in Canada.

Positive Crypto Approach

Despite this setback, Canada has had an overall positive approach towards cryptocurrency with various traditional financial institutions investing within this field of work. They have also approved one of the first spot Bitcoin ETFS a few years back which demonstrates their willingness and openness when it comes cryptocurrency-related investments..

Conclusion

Binance’s decision to close up shop in Canada is unfortunate news but is largely caused by amendments made by local regulations regarding stablecoins deposits and purchases on exchanges . Despite this, Canada still maintains an overall positive outlook towards cryptocurrencies and investments related within this field of work .