Binance, the world’s largest crypto trading platform, has announced that it will be winding down its operations in Canada. The decision comes two years after the exchange was given the green light to operate in the country.
The exchange cited recent amendments to Canadian legislation that have affected stablecoin deposits and purchases on exchanges. In February, the Canadian Securities Administrators announced new guidelines that make it mandatory for local exchanges to seek its permission before accepting stablecoin deposits or allowing users to buy such assets. The watchdog has multiple due diligence tests, which makes the process lengthy.
Small but Sentimental Market
Binance admitted that the Canadian market was small but “sentimental” and that it intended to keep working in it. However, the recent decision by the Canadian Securities Administrators stands in its way.
“We put off this decision as long as we could explore other reasonable avenues to protect our Canadian users, but it has become apparent that there are none,” the exchange said in a statement on Twitter.
Canada’s overall approach to crypto has been relatively positive, with a few traditional financial institutions investing in the industry. The country also approved one of the first spot Bitcoin ETFs a few years back. However, its recent policy change harmed several exchanges, including Crypto.com.