Binance to wind down operations in Canada amid tighter regulation

The cryptocurrency exchange Binance announced it would wind down its operations in Canada amid tightening regulatory requirements for trading platforms in the country.

Unfortunately, today we are announcing that Binance will be joining other prominent crypto businesses in proactively withdrawing from the Canadian marketplace.

We would like to thank those regulators who worked with us collaboratively to address the needs of Canadian users.…

— Binance (@binance) May 12, 2023

“We would like to thank those regulators who cooperated with us to meet the needs of Canadian users. Although the market is small, it had sentimental value for us as the homeland of our founder,” the exchange said.

In December 2022, Canadian securities regulators tightened the requirements for cryptocurrency firms after the collapse of FTX, extending them to organisations registered in other jurisdictions.

Binance clarified that it had delayed the decision hoping to find “reasonable paths to protect” users, but could not do so. Canadian customers of the platform will receive emails with details of the next steps.

“Although we disagree with the new rules, we hope to continue cooperating with Canadian regulators to create a thoughtful, comprehensive regulatory framework. We are confident that one day we will return to the market, and Canadian users will again have access to a broader set of digital assets,” Binance said.

In March 2023, the cryptocurrency exchange OKX announced the cessation of services to Canadian users. They must close positions by 22 June.

In April, the decentralised exchange dYdX announced the termination of operations in Canada. New user registrations from the country have been halted since 7 April.

Earlier in April, the infrastructure company and issuer of stablecoins Paxos decided to exit the Canadian market, but allowed a return to the country in the future.