- Binance declared withdrawal from Ontario in March 2022 due to regulatory disagreements.
- Kraken filed the new preregistration undertaking and remains committed to operating in Canada.
- The CSA authorizes 11 platforms for conducting business with Canadian cryptocurrency enthusiasts.
Binance announced via Twitter on May 12 that it will be exiting the Canadian market. The cryptocurrency exchange describes its decision as “proactive” in response to the ongoing impact of new guidelines from Canadian regulators on the country’s crypto industry.
Following the introduction of rules by the Canadian Securities Administrators (CSA) on February 22, Binance is joining its smaller competitors in the Canadian exodus. The regulations imposed by CSA necessitate filing new preregistration undertakings and complying with additional restrictions.
Despite reportedly filing a new preregistration undertaking, Binance clarified:
Unfortunately, new guidance related to stablecoins and investor limits provided to crypto exchanges makes the Canada market no longer tenable for Binance at this time.
Binance
The recently introduced rules by the Canadian Securities Administrators (CSA) prohibit firms from allowing Canadian clients to engage in crypto contracts for purchasing and selling any crypto asset classified as a security or derivative. Additionally, the rules categorize stablecoins as securities.
In March, OKX withdrew from the Canadian market, and this was followed by the decentralized exchange dYdX and blockchain fintech Paxos pulling out in April.
Binance notified its Canadian users via email to close their open positions before September 30, 2023. It further cautioned that starting from October 1, 2023, Canadian customers would only have access to liquidation services. Despite expressing disagreement with the new guidance, the exchange expressed its intention to maintain dialogue with Canadian regulators in order to establish a well-considered and comprehensive regulatory framework.
Binance previously operated in all Canadian provinces and territories except Ontario but withdrew from Ontario in March 2022 due to regulatory disagreements. However, there are still options for Canadian cryptocurrency enthusiasts. Kraken, for instance, filed the new preregistration undertaking in March and expressed its commitment to continue operating in Canada. The CSA has a list of 11 platforms authorized to conduct business with Canadians.
