Binance VS Regulations // CANADA Division Cease Operations, What's ***?

Peace,

How are you doing crypto friends?

Binance is one of the largest cryptocurrency exchanges in the world. I can confirm the effective utilization of Binance in Africa since I am in West Africa Benin and I regularly trade with Binance.

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I was surprised when I read about the announcement that Binance was leaving the Canadian marketplace because of the new stablecoin and investor limits in the country. It is happening even for a successful crypto company that we thought could not easily see its operations being restricted to developing countries.

The Canadian Securities Administrators released new guidance in February 2023, which gives crypto trading platforms operating in the country 30 days to register or leave. Considering that previous regulations are still active, cryptocurrency firms that agree to these terms will have to adhere to stricter rules. A noticeable rule in the guidance is that Binance and other companies will have to seek approval from the Canadian Securities Administrator before allowing users to buy or deposit stablecoins. I thought about the situation and understood that Canadian Securities Administrators want not only to monitor Binance user transactions but also to cancel transactions on any account for reasons only Canadian securities agents can define.

Binance firm operations in Canada did not agree with the new regulations, but Binance kept working with officials in the hope of succeeding in the production of a comprehensive regulatory framework.

Binances’ exit from Canada comes as the cryptocurrency industry faces increasing regulatory scrutiny around the world. In the US, the DOJ and the Internal Revenue Service have been looking into claims that could negatively affect crypto firms in the country. The reason is the same as the risk of money laundering and evading international sanctions. It is known that money laundering has not stopped with the fiat-based system. Cryptocurrencies offer a chance to limit this bad financial operation only if officials collaborate with a large exchange.

Canadian crypto enthusiasts are growing, so cryptocurrency exchanges such as Bitbuy, Coinsquare, and Kraken are still present on the market despite the tough regulations. I believe that many Binance users will migrate to the previously cited company. The real question remains about the effectiveness of all the regulations forced on companies. Will these firms remain operational in Canada the following year, when officials upgrade the regulations?

Binance decision to withdraw from the Canadian marketplace demonstrates how challenging it is for cryptocurrency exchanges to comply with newly released regulations by countries. While the regulatory environment for cryptocurrencies is evolving, it is crucial for investors to conduct their personal investigations and choose reputable exchanges that will not compromise their finance or security.