New crypto laws were implemented by Canadian authorities just days before Binance made its decision.

The restrictions on the number of investors and the necessity of registering as a new business were stressed in the new regulations. New preregistration requirements (PRU) have been implemented by Canadian regulators for virtual asset service providers (VASPs) operating in the country.

Before proceeding, what exactly is binance?

Binance is a comprehensive cryptocurrency platform that provides various services related to cryptocurrencies and blockchain technology. It operates as a cryptocurrency exchange, allowing users to buy, sell, and trade a wide range of digital assets. Here are the key aspects of what Binance is all about:

1. Cryptocurrency Exchange: Binance offers a user-friendly platform for trading cryptocurrencies. Users can exchange one cryptocurrency for another, such as Bitcoin for Ethereum or Ripple for Litecoin. The exchange supports a vast number of cryptocurrencies, including popular ones like Bitcoin (BTC), Ethereum (ETH), Binance Coin (BNB), and many others.
2. Trading Services: Binance provides multiple trading options to cater to different user needs. It offers spot trading, where users can trade cryptocurrencies at the current market price. Additionally, Binance offers futures trading, allowing users to engage in derivatives trading with leverage. Margin trading is also available, enabling users to borrow funds to trade larger positions.

1. Binance Coin (BNB): Binance has its native cryptocurrency called Binance Coin (BNB). It serves as the utility token within the Binance ecosystem and provides various benefits. Users can use BNB to pay for trading fees on the platform, participate in token sales on Binance Launchpad, and access other platform features and services.
2. Additional Services: Binance has expanded its offerings beyond trading. It provides various services to cater to different cryptocurrency needs. These include Binance Staking, where users can stake their cryptocurrencies to earn passive income, and Binance Savings, which allows users to earn interest on their digital assets. Binance Card is another offering that enables users to spend their cryptocurrencies at merchants that accept traditional card payments.
3. Innovation and Expansion: Binance has been at the forefront of innovation in the cryptocurrency industry. It has launched initiatives like Binance Labs, a blockchain technology incubator, and Binance Launchpad, a platform for launching and investing in new blockchain projects. Binance is also involved in fostering blockchain education and supporting the development of the broader crypto ecosystem.
4. It's worth noting that Binance has evolved and expanded its services since its inception, and it continues to introduce new features and improvements over time. Its primary focus is to provide a comprehensive platform for users to engage in cryptocurrency trading and access a range of related services.
5. Binance is one of the largest cryptocurrency exchanges in the world. It was founded in 2017 by Changpeng Zhao (also known as CZ) and is headquartered in Malta. Binance provides a platform for users to buy, sell, and trade a wide range of cryptocurrencies.

Causes for Binance's Leaving the Canadian Market

Canadian regulators laid out the potential consequences for unlicensed cryptocurrency businesses. The Ontario Securities Commission (OSC) has issued a notice urging all crypto entrepreneurs and traders to follow the rules.

As crypto assets face increasing regulatory scrutiny in Canada, the Binance team announced on Twitter that they will be leaving the country.

The tweet claims that Canada is no longer suitable for Binance because of the new regulations on stablecoin issuance and investor limits. The Binance team will cooperate with Canadian authorities to create a solid framework for regulating digital currencies.

An Analysis of Canada's Recent Cryptocurrency Laws

Meanwhile, the cryptocurrency exchange voiced its displeasure with Canada's new rules. According to a study of the new Canadian rule, stablecoins pegged to the dollar were largely categorized as securities.

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Customers, on the other hand, are not allowed to engage in the purchase or sale of crypto assets and must instead apply for and get securities or digital derivatives from a regulated exchange. All cryptocurrency approvals will be subject to extensive, time-consuming, and expensive due diligence checks by the regulations set forth by the Canadian Securities Administrators (CSA).

It has been discovered that the new Canadian regulations are difficult to comprehend. Due to the volatility of the crypto market, the rules are also fluid. Binance tweeted that it would resume operations in Canada after the country updated its legislation on cryptocurrencies.

The Future of Binance Is Revealed

After Canada opens up to the usage of various digital assets, Binance CEO Changpeng Zhao said in a report that the exchange would return to the country.

Canadian users of the cryptocurrency exchange Binance were reportedly informed in an official report to wrap up any outstanding trades on the platform before September 30. The Binance team has decided to launch liquidation mode on the cryptocurrency exchange in October.

This comes after the Binance team pulled out of Ontario because to regulatory conflicts. Binance reportedly provided its consumers with cryptocurrency-related services and goods in the remaining Canadian provinces.

Due to governmental pressure, Binance has left the Canadian market, joining other cryptocurrency firms that have already done so. OKEx, a cryptocurrency exchange, said on March 20 that it would be closing its Canadian operations by June.

According to a tweet from OKEx, the cryptocurrency exchange would stop allowing new accounts to be created as a result of the new rules. After that, major crypto derivatives exchange dYdX stated it will cease operations in Canada due to the new rules.

The decision to pull out of Canada by dYdX, however, corresponds with Paxos' strategic decision to scale back its presence in the region. Kraken, on the other hand, has stated that it intends to remain in Canada, in contrast to other rapidly expanding crypto enterprises.

Read More: Ethereum Founder Sends $500K To A Major Exchange

When will Binance come back to Canada?

To protect the investor from abuse, the Kraken Group signed an OSC preregistration undertaking document on March 30. There are now just eleven crypto companies that are authorized to conduct business in Canada.

Binance has been under scrutiny from regulatory bodies around the world for its role in the FTX collapse, which led to price fluctuations. New regulations were reportedly implemented due to the volatile crypto market and price fluctuations. To comply with the new crypto regulations, crypto companies must now reveal their inner workings and the digital assets of their consumers.

The U.S. Commodity Futures Trading Commission accused Zhao of violating the law when strict crypto laws were enacted. The authorities have condemned Binance, calling its business practices fraudulent and illegal.