On May 12, Binance announced that it would exit the Canadian market due to new regulations issued by Canadian regulators. The cryptocurrency exchange has described this move as “proactive,” following the example of other smaller competitors that have also withdrawn from the Canadian market due to the introduction of new rules by the Canadian Securities Administrators (CSA) in February 2022.
Although Binance filed a new registration undertaking, it has stated that the new guidance related to stablecoins and investor limits has made it impossible for the exchange to continue its operations in Canada. The CSA’s new rules have prohibited firms from allowing Canadian clients to trade in crypto contracts that are securities and/or derivatives and have defined stablecoins as securities.
Binance sent an email to its Canadian users, instructing them to close their open positions by September 30, 2023, warning that they would be in liquidation-only mode from October 1, 2023. However, Canadian cryptophytes still have options, as Kraken has filed the new registration undertaking and committed to staying in Canada, and the CSA has authorized 11 platforms to conduct business with Canadians.