Binance, the world’s biggest cryptocurrency exchange, is leaving Canada - National | Globalnews.ca (2024)
Binance, the largest cryptocurrency exchange in the world, says it is pulling out of the Canadian market.
The exchange announced the move on Twitter Friday afternoon.
“Unfortunately, today we are announcing that Binance will be joining other prominent crypto businesses in proactively withdrawing from the Canadian marketplace,” the tweet read.
Unfortunately, today we are announcing that Binance will be joining other prominent crypto businesses in proactively withdrawing from the Canadian marketplace.
We would like to thank those regulators who worked with us collaboratively to address the needs of Canadian users.…
Canada has tightened regulations for crypto asset trading platforms in recent months, with the introduction of a pre-registration process. The companies that do not adhere to the rules will face potential enforcement action, according to thewebsiteof the Ontario Securities Commission.
Binance was already restricted in Ontario as of 2022.
The crypto exchange said it put off the decision to leave the market for as long as it could to protect its Canadian users but found no path forward.
The exchange said Canadian customers will receive an email with information on how their accounts will be affected.
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Binance suggested that it would one day return to the Canadian market when “users have the freedom to access a broader suite of digital assets.”
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“While we do not agree with the new guidance, we hope to continue to engage with Canadian regulators aimed at a thoughtful, comprehensive regulatory framework,” the tweet read.
Binance founder and CEO Changpeng Zhao, who more commonly goes by CZ, is Canadian.
The digital assets industry has been in thecrosshairs of regulatorsaround the world, especially since the collapse ofBinance-rival FTX in November, which triggered a market rout in the prices of the biggest digital coins.
Following the onset of the crypto winter of 2022, which wiped out more than a trillion dollars from the industry’s market value, lawmakers and securities regulators demanded tighter guidelines for disclosures on how the crypto companies operate and hold customer funds.
In March,Binanceand its CEO Zhaowere suedby the U.S. Commodity Futures Trading Commission for operating what the regulator alleged was an “illegal” exchange and a “sham” compliance program.
The world's largest crypto exchange by volume said new guidance related to stablecoins and investor limits prompted the exit. Crypto exchange Binance has announced that it would cease operations in Canada, citing the challenging regulatory environment.
May 9 (Reuters) - Canada's anti-money laundering agency on Thursday said it had imposed a nearly C$6 million ($4.38 million) fine on cryptocurrency exchange Binance for violating the money laundering and terrorist financing laws.
Is Binance banned in the US? No, but you can't use Binance fully in the US because it uses securities not registered with the Commodity Futures Trading Commission.
Binance shut down US accounts due to regulatory issues with the U.S. Securities and Exchange Commission (SEC). Binance has faced increased scrutiny from the SEC over the past year, as the agency has been cracking down on cryptocurrency exchanges operating in the US without the proper licenses.
According to U.S. Attorney General Merrick Garland, Binance broke American law and made it simple for thieves to transfer money that had been pilfered or illegally obtained. According to the indictment, Binance violated sanctions by facilitating more than 1.1 million transactions between Americans and Iranians.
Depending on the reason for the shutdown, Binance could face legal actions, asset freezes, or hacking attempts that could jeopardize the security and availability of the funds. Users who store their crypto assets on Binance would risk losing their money or having to wait for a long time to get it back.
Binance, which has no designated global headquarters, has courted controversy worldwide. In November 2023, its founder and erstwhile chief executive Changpeng Zhao pled guilty to money laundering charges by the US Securities and Exchange Commission.
In 2019, Binance was banned in the United States on regulatory grounds. In response, Binance and other investors opened Binance.US, a separate exchange designed to comply with all applicable US federal laws, which nonetheless is banned in six states: Hawaii, Idaho, Louisiana, New York, Texas, and Vermont.
Is Binance Exchange Safe? Binance is often considered one of the safest exchanges in the world if you consider the level of security. If the exchange crashed or a hacker stole assets or funds, the SAFU reimburses its users from the $1 billion fund. Not every platform has an insurance fund in place.
Yes, it is possible for someone in the US to use Binance. Binance has a separate platform called Binance US that is specifically designed for users in the United States. It complies with US regulations and offers a range of cryptocurrencies for trading.
Binance restricts withdrawals for various reasons, including abnormal user profiles, transaction patterns, operating behavior, devices, or environmental factors. For example, Binance may temporarily disable your account's withdrawals if you repeatedly send funds to a blacklisted address.
While Binance.US no longer supports USD services, you can still cash out by withdrawing your crypto to another trusted platform that offers USD services.
The company will survive, however, even though its founder and CEO, Changpeng Zhao, was forced to step down as part of his plea agreement. In the world of federal white-collar prosecutions, where the government usually gets what it wants, Binance's survival is a victory for the defense.
But you'd never know. Binance, the world's largest cryptocurrency exchange, doesn't want to be called a Chinese company. It was founded in Shanghai in 2017 but had to leave China just a few months later because of a major regulatory crackdown on the industry.
“Binance's and Zhao's willful violations of anti-money laundering and sanctions laws threatened the U.S. financial system and our national security, and each of them has now pleaded guilty. Make no mistake: when you place profits over compliance with the law, you will answer for your crimes in the United States.”
Cryptocurrency exchange giant, Binance, facing charges for alleged $35.4million money laundering and tax evasion in Nigeria, has been fined about C$ 6 million ($4.38million) by Canada's anti-money laundering agency for violating the country's money laundering and terrorist financing laws.
The best overall Binance alternative is Zengo Wallet. Other similar apps like Binance are Coinbase Exchange, UPHOLD, Gate.io, and Poloniex. Binance alternatives can be found in Cryptocurrency Exchanges but may also be in Cryptocurrency Wallets or Crypto Mining Software. Have you used Binance before?
Binance will continue to operate but with new ground rules. The company is required to maintain and enhance its compliance program to ensure its business is in line with U.S. anti-money-laundering standards. The company is required to appoint an independent compliance monitor.
Coinbase. Coinbase is one of the biggest and most trusted cryptocurrency exchanges in the world. The platform offers more than 50 cryptocurrencies to buy, sell, and trade for Canadian investors.
Introduction: My name is Lidia Grady, I am a thankful, fine, glamorous, lucky, lively, pleasant, shiny person who loves writing and wants to share my knowledge and understanding with you.
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