Canada Global (Web News) Binance announced on Friday that it was leaving Canada, weeks after the country enacted a variety of new regulations for cryptocurrency exchanges, including investor restrictions and necessary registrations.
Canada recently tightened restrictions for websites that trade crypto assets by establishing a pre-registration process. According to the website of the Ontario Securities Commission, companies that violate the rules may face regulatory action.
“Unfortunately, (the) new guidance related to stablecoins and investor limits provided to crypto exchanges makes the Canada market not longer tenable for Binance at this time,” the cryptocurrency exchange Binance declared in a tweet.
In order to create a comprehensive framework for cryptocurrency activities in Canada, Binance indicated that it disagrees with the most recent recommendations.
The Canadian Changpeng Zhao founded a cryptocurrency exchange that states, “We are confident that we will someday return to the market when Canadian users once again have the freedom to access a wider suite of digital assets.”
The collapse of Binance rival FTX in November, which caused a market meltdown in the values of the major digital coins, has drawn the attention of regulators from all over the world to the digital assets sector.
After the crypto winter of 2022, which erased more than a trillion dollars off the industry’s market value, legislators and securities authorities demanded more laws for disclosures on how cryptocurrency companies operate and maintain user money.
In March, the U.S. Commodity Futures Trading Commission filed a lawsuit against Binance and its CEO Zhao for allegedly running a “illegal” exchange and a “sham” compliance programme.