Binance claims it can no longer operate in the nation due to new instructions on stablecoins.
On Friday, the cryptocurrency platform announced the change, explaining that it was due to new regulations that made the Canadian market “no longer tenable” for its business.
“The remainder of Canada’s blockchain sector was something we had great expectations for. Binance announced in a tweet, “Due to recent regulatory changes in Canada regarding stablecoins and investor limits, we have decided to withdraw from the Canadian market at this time.”
However, after the recent regulatory action, it is withdrawing from the market with other sites. Despite their disagreement with the new guidelines, Binance expressed a desire to collaborate with Canadian authorities toward “a thoughtful, comprehensive regulatory framework.”
Binance is a significant participant in the cryptocurrency business that has applied for and received licenses from relevant authorities in the majority of the countries where it operates. It has also been a leading voice calling for more clarity in regulations throughout the world.
Its decision to leave Canada comes only a few months after new regulations for stablecoins were established by Canada’s securities regulators, the CSA.
In a February memo, the government had requested that domestic crypto exchanges get permission from regulators before letting users trade in stablecoins. In light of the increased regulatory scrutiny, this also encompassed the purchase or deposit of stablecoins, which necessitated further due diligence investigations by exchanges.
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