Binance to go, Coinbase to stay: the crypto market in Canada is in turmoil
- The country has tightened regulations on cryptocurrency companies
- And Binance doesn't stand much of a chance.
- Especially given the recent crackdownThe country has tightened regulations on cryptocurrencies
Coinbase is negotiating with Canadian regulators to stay operating in the market. However, larger rival Binance looks set to leave. This was reported by Coindesk, citing an insider.
As a reminder, the country is introducing new rules for the registration and control of cryptocompanies. They announced this at the end of February. And gave participants a month to process their initial registration.
US-based Coinbase is communicating closely with regulators to get permits and continue operating in Canada.
Meanwhile, there are reports that Binance is preparing to exit. The exchange is responding to official enquiries from journalists with vague language. They have stated that they are actively communicating with Canadian regulators in search of a solution.
Interestingly, the head of the company, Champeng Zhao, is a Canadian citizen.
In addition to Binance, other well-known brands will also leave the local market. OKEx, Blockchain.com and Deribit had previously officially announced their departure. Kraken and Cryptocom, on the other hand, are planning to fight for a licence.
New Canadian rules are making it much more difficult for exchanges to operate. They now have to hold Canadian and all other customers' funds separately. Canada is also tightening the rules for margin trading, stabblecoin transactions and leveraged trading.