Why the crypto exchange is turning its back on Canada

Binance pulls the rip cord. The trading platform will be closed indefinitely in Canada. The company announced it in one go on Friday evening Tweeter known. Regulatory reasons meant further mining was “no longer justifiable”, according to the message. Canadian users would receive “detailed information” on the continued existence of their accounts in the coming days.

End of February worsen Canadian Securities Administration (CSA) regulatory rules for crypto service providers. Among other things, the regulator required binding evidence of segregation of client and company assets and banned margin trading. In addition, the authority has prohibited the trading of stablecoins, but exceptions are possible in consultation with the CSA. Binance rejects the new rules, the tweet continues. The crypto exchange does not explain exactly which one.

From a business perspective, the farewell is of little consequence, as the mall conducts only a fraction of its business via Canada. As the home country of Binance CEO Changpeng Zhao, emotional damage is likely to hurt him the most. This is probably one of the reasons why the exchange wants to continue working with the authorities in order to come back in the future.

Always problems with Americans

This is the next setback for the North American crypto exchange to suffer. Until now, Binance has been under constant regulatory fire, especially in the United States. First, the Securities and Exchange Commission (SEC) launched a sweeping attack on Paxos in late February, burying the Binance BUSD stablecoin. A month later, the CFTC followed suit and sued the trading platform for violating applicable federal laws. The crypto exchange would have allowed US citizens to trade derivatives despite the ban.

Due to regulations in the United States, Binance suspended the Voyager agreement at the end of April. The US arm of the crypto exchange actually wanted to take over the assets of the insolvent lending service. The deal had already been approved by the court. However, due to regulatory ambiguities in the US, Binance backed out at the last second.

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Tristan Lowe

Coffee buff. Web enthusiast. Unapologetic student. Gamer. Avid organizer.

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