Binance, the cryptocurrency exchange that has been at the heart of numerous controversies including the FTX implosion and subsequent cancelled Voyager Digital buyout, has officially pulled the plug on servicing its Canadian customers.
On Friday, Binance announced it will be withdrawing from the Canadian market, citing stringent regulatory hurdles. “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 wrote in a tweet.
“We put off this decision as long as we could to explore other reasonable avenues to protect our Canadian users, but it has become apparent that there are none.”
Over the past several months, Canadian regulators— namely the Ontario Securities Commission (OSC), have significantly tightened regulations for cryptocurrency platforms by implementing mandatory registrations and investor limits, and companies that fail to abide by the new guidelines are to face enforcement action. “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 added.
However, this isn’t the first time Binance has sparred with the OSC. Back in July 2021, Binance exited from the Ontario crypto market after failing to make compliance efforts with Canadian securities guidelines. The crypto exchange then announced a brief resumption of services for its Ontario customers in December 2021 after supposedly registering with the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) as a Money Service Business (MSB).
However, the OSC called Binance’s announcement “unacceptable” because regulators weren’t notified of the statement, let alone grant the crypto exchange the necessary approvals it claimed to have received.
Information for this briefing was found via Twitter and the sources mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.