![]() ![]() Since Changpeng Zhao (“CZ”), the co-founder and CEO of Binance, is a Canadian citizen, the company earlier this year announced that it was considering cutting connections with its U.S. Since receiving more scrutiny from North American regulators and appearing to be scaling back operations there, Binance has been a hot issue for many regulators in recent years. On the other side, Binance also discussed how it disagrees with the new restrictions in a series of tweets sent out last Friday, even if they emphasized that they still hoped to collaborate with Canadian officials to further establish a regulatory framework for cryptocurrencies. The new regulation that Binance is referring to was made public earlier this year by the Canadian Securities Administrators (CSA), and it forbade domestic crypto asset trading platforms from allowing consumers to purchase or deposit stablecoins without the CSA’s prior approval.Ĭrypto trading platforms must be able to pass the different due diligence procedures made by the Canadian Securities Administrators in order to be granted the aforementioned approval. This was subsequently followed by a second tweet that expressed sadness, noting that Binance was no longer able to operate in the Canadian market due to the country’s new regulations on stablecoins and investor limits for cryptocurrency exchanges. You may recall that the cryptocurrency exchange platform tweeted last Friday that “We had high hopes for the rest of the Canadian blockchain industry.” Crypto Industry’s Major Players Leave CanadaĪs was already mentioned, the exchange has already made the choice to stop operating in Canada, and they cited the country’s difficult regulatory environment as justification.This included buying or depositing stablecoins, a requirement that meant further due diligence checks for exchanges amid the tightening regulatory scrutiny. The February communication had asked crypto trading platforms operating in the country to seek approval before allowing customers to use stablecoins on their platforms. It has also been one of the main advocates of more regulatory clarity across the globe.īut its decision to exit Canada comes a few months after the Canadian Securities Administrators (CSA) outlined new guidance regarding stablecoins. The question of regulatory clarityīinance is a major crypto industry player that has sought regulatory approval in most of the jurisdictions that it offers its services. “ While we do not agree with the new guidance, we hope to continue to engage with Canadian regulators aimed at a thoughtful, comprehensive regulatory framework,” Binance wrote. The crypto exchange giant said it had “put off this decision as long as could to explore other reasonable avenues to protect Canadian users.” However, it’s joining other platforms to withdraw from the market after the latest regulatory move. 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,” the exchange said in a tweeted statement. ![]() “ We had high hopes for the rest of the Canadian blockchain industry. The crypto platform 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. The exchange says it will continue to engage regulators even if it doesn’t agree with new guidance.īinance, the world’s largest crypto exchange by trading volume, has announced its exit from Canada.New rules required exchanges to seek approval before allowing their customers to buy or deposit stablecoins.Binance says new guidance on stablecoins has made it untenable to continue operating in the country.
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