Binance, the world’s largest cryptocurrency exchange by volume, announced on May 12 that it would retreat from Canada in response to new crypto guidelines issued for cryptocurrency companies. This move by the cryptocurrency exchange comes in the midst of a period when it is facing serious regulatory scrutiny in the US, leading to comments that Binance may retreat from the US as well.
Binance Retreat from Canada
Binance announced on May 12th that it joined other major cryptocurrency companies in retreating from Canada. While the giant cryptocurrency exchange still has high hopes for the Canadian blockchain industry, it has made an important decision by retreating from the country. Binance’s decision to retreat from Canada is cited as a reason for the new crypto guidelines linked to stablecoins and investor limits. The cryptocurrency exchange added that there will be more communication for its Canadian users on how this retreat will affect their accounts.
However, the cryptocurrency exchange also underlined that it will return to Canada on a day when users will regain the freedom to access a wider selection of cryptocurrencies.
May Also Retreat from the US Market
Binance and its CEO Changpeng Zhao (CZ) are also facing legal challenges for failing to comply with US cryptocurrency guidelines. Most recently, the US Commodity Futures Trading Commission (CFTC) filed a lawsuit against CZ and three other entities that operate Binance.
First, on May 11, news broke that CZ, which holds a majority stake in Binance’s US arm Binance.US, was looking for ways to reduce its stake in the company. The news claimed that the CEO of Binance has been trying to sell some of his shares in Binance US since the summer of 2022.
Market observers and experts believe that the increasing pressure from US regulators on cryptocurrency companies and exchanges may force Binance to retreat from the country, and CZ’s efforts to reduce its stake in Binance.US, the US arm of the exchange, may be an indication of this.
