The exchange also thanked regulators that it worked with and added that the Canadian market held significant sentimental value for the exchange, given that it was its founder’s home country. “Unfortunately, today we are announcing that Binance will be joining other prominent crypto businesses in proactively withdrawing from the Canadian marketplace.” This, according to Binance, made it unviable to continue operations in the country. According to Binance, Canada passed recent rules related to stablecoins and investor limits for cryptocurrency operations. The exchange blamed new regulatory guidance as the primary reason to quit the Canadian Market. The exit came as a surprise to users and was announced in a tweet on Binance’s official Twitter handle. Join us on Telegram and follow us on Google News.In a significant development affecting Canadian users, Binance, the world's leading cryptocurrency exchange by trading volume, has declared that it will cease operations in the country. Want alpha sent directly to your inbox? Get degen trade ideas, governance updates, token performance, can’t-miss tweets and more from Blockworks Research’s Daily Debrief.Ĭan’t wait? Get our news the fastest way possible. Subscribe to Blockworks’ free newsletter now. Get the day’s top crypto news and insights delivered to your email every evening. ![]() Last September, the Ontario Securities Commission (OSC), Canada’s largest financial regulator, outright banned trading platforms operating locally from touching leading stablecoin tether - although it hasn’t explicitly stated whether it deems USDT a security. “Closest to a definitive statement we’ve seen stablecoins as securities/derivatives.” “This categorization could lead to a major delisting of on Canadian exchanges,” Robinson said. Jacob Robinson, lawyer at Canadian law firm McCarthy Tétrault, tweeted that the new rules may have a large impact on local crypto exchanges. The CSA did not immediately respond to a request for comment. ![]() It is unclear exactly when the new provisions will take effect, though platforms can expect to be contacted individually to discuss the changes. Crypto exchanges must have established policies and procedures to determine whether the digital assets they list are securities or derivatives. “The CSA is of the view that stablecoins, or stablecoin arrangements, may constitute securities and/or derivatives,” the group said. Ray testified before Congress on Monday that FTX had commingled user assets with sister trading firm Alameda Research in a bid to generate additional revenue for itself.ĬSA regulators also warned crypto exchanges not to facilitate any cryptocurrency that may be considered a security - a designation which the regulators say could include stablecoins. Singapore is mulling a similar move for retail investors.Ĭanada’s new restrictions come around one month after Sam Bankman-Fried’s FTX exchange began unraveling, leading to its bankruptcy. Margin crypto trading will be prohibited to all Canada-based traders, including institutional clients and organizations. ![]() ![]() “Following recent events in the crypto market, the CSA is strengthening its approach to oversight of crypto trading platforms by expanding existing requirements for platforms operating in Canada,” the organization said. Custodians are considered qualified if they’re regulated in Canada, the US or similar jurisdiction. That’s according to fresh guidelines set by the Canadian Securities Administrators (CSA), an umbrella organization for securities regulators across the region.Ĭrypto trading platforms will also be required to hold Canada-based users’ assets with an “appropriate” qualified custodian, the CSA said in a Monday statement. Crypto exchanges operating in Canada must segregate user funds from operational cash and stop offering leverage to margin traders moving forward.
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