Binance Exits Canada

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Binance
Binance

Binance or Binance Holdings Ltd, is a global cryptocurrency exchange company. On May 12, the exchange announced its withdrawal from the Canadian market via Twitter. The exchange has called its withdrawal as proactive as new Canadian regulations are affecting the nation’s cryptocurrency industry.

The exit of Binance and several other smaller cryptocurrency exchange companies are a result of the directives announced on February 22 by the Canadian Securities Administrators or CSA. The directives demand cryptocurrency exchange companies file for new pre-registration agreements and impose limitations.

Addressing the directives, Binance took it to Twitter calling its withdrawal unfortunate, as the exchange joins other leading cryptocurrency companies in exciting the Canadian market. The exchange has also thanked regulators who collaborated with them in addressing the Canadian user demands. The exchange states that the new guidance associated with stablecoins and limiting investors conditioning cryptocurrency agencies makes it untenable for Binance to continue operations in Canada. 

Binance Sends Email To Users With Information

In Binance’s Twitter post on Friday, addressing its Canadian users, they stated that the users will be receiving detailed emails on how the withdrawal will affect their accounts. The exchange has also stated continuing engagement with Canadian regulators for a regulative structure, even though it does not accept the new directives. The exchange is confident in returning back to Canada when crypto users will have the freedom to access digital assets. 

Cointelegraph has observed that the exchange has emailed its Canadian users, instructing them to close their accounts by September 30, 2023. The exchange has announced the initiation of liquidation mode from October 1, 2023. The exchange had previously withdrawn from the Canadian province of Ontario in March 2022. CEO and founder of the exchange, Changpeng Zhao was also sued by the Commodity Futures Trading Commission of the USA in March 2023  alleging illegal currency exchange.