• Binance, the world’s biggest crypto exchange by volume, has announced that it is withdrawing from the Canadian marketplace due to regulatory concerns.
• The Canadian Securities Administrators (CSA) published new expectations around the registration of crypto platforms in February, which has led to other prominent crypto businesses proactively withdrawing from the market.
• The move by Binance amplifies growing concern within the industry that crypto will have no choice but to move offshore.
Binance Departs Canadian Marketplace
BInance, the world’s biggest crypto exchange by volume, announced Friday that it was fleeing Canada off the back of regulatory changes in the nation. In a statement on Twitter, Binance stated that “new guidance related to stablecoins and investor limits provided to crypto exchanges makes the Canada market no longer tenable for Binance at this time”.
Other Crypto Businesses Follow Suit
Fellow exchange OKX withdrew from the Canadian market within a month of CSA’s new expectations being published in February. The decentralised exchange dYdX soon followed and last month Paxos – who formerly issued the Binance-branded stablecoin BUSD – did similarly.
The Impact On Crypto Industry
Pulling out of Canada may not be a huge issue in itself due to its small population size (just slightly less than California). However, this development adds to growing concern that regulation could push cryptocurrency out of many markets and into an offshore environment where it is harder to control or regulate.
Regulation Of Cryptocurrency: A Global Issue?
The threat posed by stricter regulation is not limited just to Canada; US regulators are also clamping down severely on cryptocurrency activity and many other countries are following suit or considering similar laws. This raises questions as to whether or not governments can effectively regulate cryptocurrency without driving it completely underground.
Conclusion
Overall, although leaving Canada may not be a huge blow for Binance or other players in the space, it serves as another warning sign of how difficult it is becoming for companies active in blockchain technology and cryptocurrency services to operate under existing regulations without facing significant risks.
Die Kommentare sind deaktiviert.