Binance May Be Ready To Give Up Canada While Coinbase Still Holds On

Key Points:

• In the context of Canada also tightening legal regulations related to cryptocurrencies, Binance may leave this question.
• However, competitor Coinbase is still discussing applying for a proper license to continue doing business in the country.
• Canada set a March 24 deadline for companies to commit to tightening the rules around cryptocurrencies in the country.

People familiar with the matter, Coinbase, are in discussions with regulators to obtain the appropriate license to continue doing business in Canada, according to Coindesk. Meanwhile, Binance may abandon this market.

“We remain as committed as ever to the Canadian market as a core component of our international road map.”

Print a statement to CoinDesk, Elliott Suthers, Coinbase’s communications director, said

Meanwhile, another person familiar with the matter, speaking anonymously, said that Binance could leave Canada. But a spokesperson for Binance said the exchange “has yet to develop a clear plan.”

In the wake of the reform of crypto regulations in Canada, many companies providing crypto services have had to consider the issue of going or staying. According to people familiar with the matter, Crypto.com also plans to stay in Canada. Earlier this month, OKEx announced its withdrawal from Canada.

Blockchain.com and Deribit also said they would be pulling out of the Canadian market, and Kraken is expected to release a statement on the matter soon.

Canada had set a March 24 deadline for companies to commit to tightening rules around cryptocurrencies in the country, which suffered a famous exchange explosion a few years ago when QuadrigaCX was hit bankrupt.

On February 22, the Canadian Securities Regulatory Authority (CSA) issued new crypto regulations, requiring exchanges and other platforms to comply with “enhanced investor protection commitments,” including segregating Canadian customers’ crypto assets and prohibiting Canadian customers from providing escrow or otherwise. Leveraged trading forms and prohibition of selling stablecoins without a CSA license.

The entire crypto industry is under the grip of the regulatory framework after experiencing tens of billions of dollars in damage to cryptocurrencies like LUNA-UST and, most recently, FTT-FTX.

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