Coinbase stays in Canada as Binance plans exit

As regulatory rules in Canada continue to tighten, crypto exchanges are forced to consider whether to continue their operations in the country or exit. Many exchanges have already announced their departure, while others are still holding talks with regulators to continue operating legally. Coinbase, one of the largest US-based exchanges, is one of the firms seeking an appropriate license to maintain its Canadian operations. A spokesperson for the company confirmed their commitment to the Canadian market, stating that it is a core component of their international roadmap.

In contrast, sources familiar with the matter stated that Binance has decided to pull out of Canada. However, executives have given different responses, with a spokesperson noting that the exchange “has not made definitive plans yet,” and another saying that Binance “is actively engaged with the [Canadian Securities Administrators] in its pursuit of registration.” It remains to be seen whether the exchange will leave Canada or continue its operations legally.

Canada has set strict deadlines for crypto firms to comply with regulations around digital assets. In February, the country introduced a new regulatory framework that requires the segregation of assets held in custody and tightens the rules around re-hypothecation, margin trading, and others. Many exchanges have struggled to comply with these rules, prompting some to exit the Canadian market altogether.

Despite the challenges, some exchanges have decided to continue their operations in Canada. Crypto.com has confirmed that it will stay in the country, while Kraken is expected to make an announcement soon. As regulatory scrutiny increases worldwide, with the SEC issuing a Wells Notice to Coinbase and the CFTC suing Binance over derivatives regulations, crypto exchanges are likely to face continued challenges in the years to come.