The new rules, among other things, recognize stablecoins as a security and prohibit buying or selling crypto assets that are a security.
Binance announced its withdrawal from the Canadian market through a tweet. From the cryptocurrency exchange they explained that the decision has to do with the new rules issued by the Canadian regulators and how that will affect the crypto sector of the North American country.
In that way, Binance joins other companies that had already started leave the Canadian market by introduction of standards by Canadian Securities Administrators (CSA) which, among other things, began to force companies to present new pre-registration commitments and adhere to the added restrictions.
ceo binance.jpg
Binance’s explanation
“Unfortunately, the new guidelines related to stablecoins and the investor limits provided to cryptocurrency exchanges make the cryptocurrency market Canada no longer sustainable for Binance right now,” they explained in a tweet.
The new CSA rules mark among the new prohibitions the fact of “allowing Canadian customers to celebrate crypto contracts to buy and sell any crypto asset that is itself a security and/or a derivative“, and define the stablecoinsas a worth.
binance coin.jpg
In this context, the company’s tweet arrived transmitting its decision to leave the country of origin of its founder: “Unfortunately, today we announce that Binance will join other prominent cryptocurrency companies in the proactive withdrawal from the Canadian market“.
After that, Binance sent its Canadian users a email in which he encouraged them to close your positions open before September 30th of this year. “From October 1, 2023Canadian customers will contact only settlement mode“warned the company’s communication.
In this framework, the exchange also left a message to Canadian users about what may happen in the future: “While we do not agree with the new guidance, we hope to continue collaborating with Canadian regulators with the aim of achieving a thoughtful and comprehensive regulatory framework“.
Source: Ambito
I am a 24-year-old writer and journalist who has been working in the news industry for the past two years. I write primarily about market news, so if you’re looking for insights into what’s going on in the stock market or economic indicators, you’ve come to the right place. I also dabble in writing articles on lifestyle trends and pop culture news.
