May 12 (Reuters) - Binance said on Friday it was pulling out of Canada, weeks after the country issued a series of new guidelines for cryptocurrency exchanges, including investor limits and mandatory registrations.
Canada has tightened regulations for crypto asset trading platforms in recent months, introducing a pre-registration process. Companies that do not adhere to the rules will face possible enforcement actions, according to the website of the Ontario Securities Commission.
โUnfortunately, (the) new guidance related to stablecoins and investor limits provided to cryptocurrency exchanges makes the Canada market no longer sustainable for Binance at this time,โ cryptocurrency exchange Binance said in a statement. Tweet.
Binance said it disagrees with the latest guidance and hopes to engage with Canadian regulators to create a comprehensive framework for crypto trading in the country.
โWe are confident that one day we will return to the market when Canadian users once again have the freedom to access a broader set of digital assets,โ said the crypto exchange, founded by Canadian citizen Changpeng Zhao.
The digital asset industry has been in the regulatory crosshairs around the world, especially since the collapse of Binance rival FTX in November, which caused a market crash in the prices of the largest digital currencies.
Following the onset of the crypto winter of 2022, which wiped out more than $1 trillion of the industry's market value, lawmakers and securities regulators demanded stricter guidelines for disclosures about how crypto companies operate and how they hold funds from investors. customers.
In March, Binance and its CEO Zhao were sued by the US Commodity Futures Trading Commission for operating what the regulator alleged was an "illegal" exchange and a "sham" compliance program.
Reporting by Manya Saini in Bangalore; Edited by Shinjini Ganguli
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