- Canada’s stricter crypto regulations have forced many crypto firms out of the country
- Bitcoin dropped and immediately regain its strength following Binance’s announcement of the suspension of operations in Canada
The world’s largest cryptocurrency exchange has joined the list of notable crypto companies that suspend operations in Canada, per Friday’s Twitter announcement, leaving many crypto traders and investors in Canada thinking about the fate of their digital assets.
“We had high hopes for the rest of the Canadian blockchain industry. Unfortunately, new guidance related to stablecoins and investor limits provided to crypto exchanges makes the Canada market no longer tenable for Binance at this time,” Binance wrote in a tweet on Friday.
According to the post, Binance has been delaying the decision about whether or not the exchange will remain in Canada or suspend operation because it’s been exploring alternatives in order to ensure its Canadian users are protected; unfortunately, it is left with no choice but to make the tough decision to suspend crypto business in Canada.
Furthermore, Binance users in Canada will receive emails from the exchange on how to go about their various accounts.
Crypto Market Reacts to Binance Announcement
Even though Bitcoin seems to have shown a bullish move since the beginning of 2023(59% up), many factors mainly contribute to the back-and-forth of Bitcoin price, such as low liquidity and regulatory scrutiny by some countries’ regulators, especially in the US.
The new crypto regulatory framework of Canadian regulators has forced many crypto firms out of the country; those firms are OKX and Deribit, amongst others, contrarily, Kraken Exchange has announced its commitment to the Canadian market.
After Friday’s Binance announcement, Bitcoin dropped to $25,900, and not long after, it regained its strength by rallying to $26,800, per data from CoinMarketCap.
The Canadian government’s new crypto policies have undoubtedly made the crypto business in Canada unhealthy, part of the requirements includes the segregation of customers’ assets, and crypto businesses are not allowed to provide margin or leverage options in the country, amongst others.
Amidst all the challenges surrounding the crypto market, the Bitcoin network was overwhelmed with crypto transactions last week, forcing the likes of Binance to pause Bitcoin withdrawals two times in 12 hours.
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