Binance Leaves Crypto: What Does This Mean for the Industry?
• Binance, the world’s largest crypto exchange by volume, announced Friday that it was withdrawing from Canada due to regulatory changes.
• Canada is a small market, but other crypto firms have also left in recent months due to similar issues.
• The move highlights the growing concerns within the industry that crypto may have no choice but to move offshore.
Binance Departs From Canadian Market
Binance, the world’s biggest crypto exchange by volume, has become the latest company to leave Canada as regulatory concerns arise. On Friday, Binance announced their departure from the nation, citing new guidance related to stablecoins and investor limits provided to crypto exchanges as making the Canada market no longer tenable for them at this time. Binance noted that Canada holds sentimental value for them as it is their founder (CEO Changpeng Zhao) home country.
Other Crypto Companies Leaving Canada
Canada is a relatively small market with a population of 38 million people – slightly smaller than California – however this is not an isolated incident of a crypto firm leaving the nation in recent months. Fellow exchange OKX withdrew from Canadian markets within a month while decentralised exchange dYdX and Paxos who formerly issued the Binance-branded stablecoin BUSD followed suit last month.
Regulatory Concerns Growing Worldwide
The withdrawal of these companies signals larger concerns about regulation around cryptocurrencies worldwide with many voicing their worries that cryptocurrency will have no choice but to move offshore if regulations continue tightening up in various countries. This could be particularly concerning for US regulators watching closely following this news of another major player leaving another major market because of regulatory issues.
Binance’s Plans Moving Forward
Fortunately, it appears that despite pulling out of one market, Binance remains dedicated towards developing its operations in other regions around the world with plans already underway for expansion into India and other Asian markets such as Thailand and Indonesia where they are looking to become more involved in local blockchain projects and communities.
The news of Binance’s withdrawal from Canada only adds fuel to mounting fears over cryptocurrency regulations worldwide which are becoming increasingly strict; reinforcing worries amongst those invested in digital assets that cryptocurrency may soon be forced offshore if these regulations continue tightening up across different countries worldwide.