Binance, the world’s biggest crypto exchange, said it will exit Canada after the country moved to impose new regulations on digital-currency trading platforms.
(Bloomberg) — Binance, the world’s biggest crypto exchange, said it will exit Canada after the country moved to impose new regulations on digital-currency trading platforms.
In a tweet Friday, Binance said new guidance for crypto exchanges in Canada related to stablecoins and investor limits has made the market “no longer tenable” for the company.
The decision reflects a reversal of the firm’s earlier move.
Back in March, its Canadian affiliate filed paperwork to commit to registration. Some other firms — including Coinbase Global Inc., Kraken and Gemini — have signaled their intention to pursue registrations in the country.
Read More: Canada’s Tightened Crypto Rules Push Firms to Comply or Leave
Canadian securities regulators in February gave a 30-day deadline in February for unregistered crypto trading platforms operating in the country to commit to registration or leave. Firms are required to follow tougher regulations on segregating customer assets and are prohibited to offer leverage or margin to users in Canada.
Firms pursuing registrations are also prohibited from offering users stablecoins without prior consent from regulators.
The new rules have prompted some companies, such as stablecoin issuer Paxos and decentralized exchange dYdX, to wind down their Canadian operations.
The Canadian Securities Administrators previewed the guidance in December following the collapse of FTX, saying it illustrated the need for stronger oversight of the industry.
Binance, in announcing its move Friday, added Canada is a “small market” and that it hopes to “someday return to the market when Canadian users once again have the freedom to access a broader suite of digital assets.”
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