Binance Leaves Canada After Challenging Crypto Regulations

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Binance Leaves Canada After Challenging Crypto Regulations. The crypto exchange Binance announced it will cease its operations in Canada. That’s considering local country regulations are said to be increasingly challenging, although the company has high hopes for the rest of Canada’s blockchain industry.

Read Also: UK To Prepare Special Crypto Act In 12 Months

“New regulations regarding stablecoins and the investor limits provided for crypto exchanges make the Canadian market untenable for Binance at this time,” Binance said, quoted from CoinDesk, Sunday (14/5/2023).

In February, Canadian Securities Administrators (CSA) disclosed new rules that prohibit crypto asset trading platforms in the country from allowing customers to buy or hold stablecoins without CSA’s prior approval.

In order to obtain approval, crypto trading platforms are required to undergo a CSA due diligence check until they are declared passed. Binance added they did not agree with the new regulations but still hoped to work with Canadian regulators to further develop the regulatory framework around cryptocurrencies.

On the other hand, Binance co-founder and CEO Changpeng Zhao (CZ) is a Canadian citizen. So that Binance’s exit from Canada is considered a sentimental thing.

Over the past year, Binance has received increased scrutiny from North American regulators, and appears to be reducing operations in the region. Earlier this year, Binance said it was considering cutting ties with US business partners.

Binance Leaves Canada After Challenging Crypto Regulations. Previously, the Non-Fungible Token (NFT) platform owned by crypto exchange Binance said on Tuesday, May 9, 2023 it plans to add support for Ordinals, or Bitcoin NFTs in May, although an exact date was not announced.

BinanceNFT, which already supports NFTs on Ethereum, Polygon, and its native BNB Chain, plans to expand its offerings by allowing traders to buy Ordinals on the Bitcoin network.

Collectors can immediately buy and sell inscriptions, or NFTs created on the Bitcoin network, expanding the reach of the nascent Ordinals ecosystem.

Additionally, to help users get into Bitcoin NFTs, Binance will allow merchants to purchase Bitcoin-based NFTs with their Binance account, simplifying the process for users.

Read Also: Central Bank Of Zimbabwe Invites Citizens To Subscribing Gold-Based Digital Currency

Instead of having to set up a taproot-compatible Bitcoin wallet to buy Ordinal, as collectors want to mint TwelveFold Ordinals giant NFT Yuga Labs, Binance aims to make the process simple and secure for new buyers to enter emerging markets.

Binance’s Head of Product Mayur Kamat said in a press release he sees Bitcoin as the “widest choice” for NFT collectors as well as a growing market for exchanges to capitalize on.

“Bitcoin is the original cryptocurrency. We believe everything is just starting here and can’t wait to see what the future holds in this space,” said Kamat, quoted from CoinDesk, Friday (12/5/2023).

However, Binance’s relationship with Bitcoin hasn’t been all positive in recent days. On Sunday, the exchange halted Bitcoin withdrawals twice, citing network congestion as a catalyst.

As Ordinals hit 3 million inscriptions last week, the market demand for accepting Bitcoin NFTs has only increased. In March, NFT marketplace Magic Eden added support for Ordinals, integrating Hiro and Xverse Bitcoin wallets to do so.

In April, the market launched a maker launch pad to help artists print their inscriptions before listing on the secondary market.

Previously, Binance appeared to have lost market share amid changes to its trading fee structure and a broader regulatory crackdown on the cryptocurrency world by US regulators.

Binance Leaves Canada After Challenging Crypto Regulations. Binance, the world’s largest digital trading platform, now holds only about 50 percent share of the spot crypto market, its lowest since April 2022, according to data from senior research analyst at Kaiko, Dessislava Ianeva.

Its market share fell after the platform, in March removed no-fee trading on certain pairs.

“It is possible that due to the current regulatory environment some institutions are taking a wait and see approach, staying out of the market, or deploying less funds to other trading venues,” said Ianeva, quoted from CoinDesk, Thursday (11/5/2023).

Meanwhile, a report from CCData said Binance’s spot market share fell to levels before FTX’s collapse in November, with spot trading volume on the exchange dropping 48 percent to USD 287 billion in April.

That marked the second lowest monthly trading volume since 2021 and its overall market share also declined, the data provider said.

Crypto market watchers are particularly focused on trading volume and liquidity in the market, as many retail and institutional investors have fled after the FTX collapse late last year.

Read Also: Kazakhstan Earns USD 7 Million From Crypto Mining Company Taxes

In March, the US Commodity Futures Trading Commission (CFTC) sued Binance for violating American derivatives rules. Binance has denied the allegations.

Other negative events have also been a factor in making many investors previously avoid cryptocurrencies. In addition, some companies are reducing their involvement in the digital asset market.

Most recently Jane Street Group and Jump Crypto two of the world’s top market makers withdrew from digital asset trading in the US as regulators cracked down on the industry.

Binance Leaves Canada After Challenging Crypto Regulations. In April, the combined volume of spot and derivatives trades on centralized exchanges fell by nearly 30 percent to USD 2.8 trillion or equivalent to Rp 41,154 trillion, according to CCData. That marked the first month-on-month decline in trading volume this year.

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