Blockchain Platform Binance exits Canada market due to new policies
Blockchain Platform Binance exits Canada market due to new policies

SAN FRANCISCO: Leading cryptocurrency and blockchain platform Binance has announced its exit from the Canadian marketplace due to new stablecoin and investor limits in the country.

Taking to Twitter, the company noted: "We are announcing that Binance will be joining other key crypto businesses in proactively withdrawing from the Canadian marketplace.  We had high expectations for the rest of the Canadian blockchain industry. Sadly, new guidance related to stablecoins and investor limits offered to crypto exchanges makes the Canada market no longer tenable for Binance at this time," it added.

The Binance also stated that while it does not comply with the new regulations, it hopes to carry on working with Canadian regulators to develop a regulatory framework for cryptocurrencies.

As per CoinDesk, the Canadian Securities Administrators issued new regulations in February prohibiting crypto asset trading platforms in the country from allowing customers to buy or deposit stablecoins without prior approval from the Canadian Securities Administrators. It has various due diligence checks to obtain approval, the crypto trading platform would have to pass.

According to media sources, the US Commodity Futures and Trading Commission (CFTC) filed a lawsuit against Binance in March for allegedly violating trading and derivatives regulations. The CFTC also sued Changpeng Zhao, the CEO of Binance, and Samuel Lim, the chief compliance officer.

The petition claims that the exchange has not registered with the CFTC and that it has "disregarded federal laws" that control US financial markets, such as those intended to stop and identify money laundering and financing for terrorists.

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