Binance, the largest cryptocurrency exchange globally, has announced its decision to withdraw from the Canadian market due to the implementation of stricter regulations on crypto trading, according to a company statement.
The decision to exit the Canadian market is a direct response to fresh guidance provided by the Canadian Securities Administration (CSA), the regulatory body responsible for enforcing cryptocurrency regulations in the country. According to the guidance, crypto trading platforms are now prohibited from allowing customers in Canada to purchase or deposit stablecoins without obtaining approval from the CSA.
Binance in a tweet posted on Friday, expressed its disappointment, stating that it had previously held high hopes for the Canadian blockchain industry, however, the recent guidance on stablecoins and investor limits, as provided to crypto exchanges, has rendered the Canadian market untenable for Binance at this time.
Recently Binance has found itself at the centre of escalating scrutiny by North American regulators. Over the past year, the company has faced investigations from the US Department of Justice (DOJ) targeting its CEO Zhao and other executives prompted by allegations of Binance's involvement in money laundering schemes. Additionally, the cryptocurrency platform is being probed for allegedly enabling its users to circumvent sanctions imposed on Russian banks.
As a result of these mounting challenges, Binance seems to be strategically downsizing its operations in the region. Earlier this year, the company hinted at the potential severance of ties with its US business partners, indicating a significant shift in its approach.