Key Takeaways
- Crypto platforms in Canada are required to enter into a new version of preregistration undertakings, which are legally binding documents.
- Paxos and OKX have left the Canadian market recently
The world’s largest cryptocurrency exchange Binance has decided to terminate its services in Canada. Announcing the move on Twitter, Binance stated” We are confident that we will someday return to the market when Canadian users once again have the freedom to access a broader suite of digital assets.”
The latest move by Binance comes amid the Canadian Securities Administrators issuing a notice prohibiting crypto trading platforms from prohibiting from permitting Canadian clients to enter into crypto contracts to buy and sell any crypto asset that is itself a security or a derivative. As per the notice, crypto platforms are required to enter into a new version of preregistration undertakings (PRUs), which are legally binding documents.
“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’s tweet announcing its termination of Services in Canada reads.
Reportedly, Binance has sent out an email to its Canadian users asking them to close their open positions by Sept. 30, 2023. “From October 1st, 2023, Canadian customers will be put into liquidation-only mode,” the exchange stated
“While we do not agree with the new guidance, we hope to continue to engage with Canadian regulators aimed at a thoughtful, comprehensive regulatory framework”, the email reads.
Binance is not however the first crypto exchange to leave the Canadian market following the notice. In March, crypto exchange OKX left the Canadian market citing new regulations. Last month, crypto derivatives exchange dYdX stated it will be “winding down services” in Canada, starting with halting the onboarding of new users located in the country.
Paxos is another firm working in the Web3 space that has announced its decision to withdraw from the Canadian market recently.
While several crypto firms have expressed their displeasure at tougher crypto regulations set by CSA, crypto exchange Kraken has stated that it will continue operating in Canada and comply with tougher rules set out by the country’s financial regulator.
