Several of the world’s biggest cryptocurrency
exchanges say they are considering their options as Canada’s federal government
tightens regulations pertaining to digital coins and tokens.
Among the companies reported to be weighing their options is Binance, the world’s largest crypto exchange, whose chief executive officer (CEO) Changpeng Zhao, known as “CZ,” is a Canadian citizen.
While some media reports have stated that Binance is considering leaving Canada due to more stringent regulations, a company spokesperson told Baystreet.ca that: “Binance is actively engaged with the Canadian Securities Administrators (CSA) in its pursuit of registration.”
Another high-profile crypto exchange, Coinbase (COIN), has said that it too is in talks with regulators about remaining in Canada.
In a written statement, Coinbase said: “We remain as committed as ever to the Canadian market as a core component of our international road map.”
Another exchange, Crypto.com, said it plans to remain in Canada despite stricter regulations, while Kraken has said that it is evaluating the situation.
Foreign cryptocurrency exchanges have expressed concerns about Canada’s new regulatory framework, which was announced by federal officials in Ottawa on February 22 of this year.
The new rules require the segregation of assets held in custody and tightens rules for re-hypothecation, margin trading, and certain trades involving digital tokens and stablecoins.
Canada is one of several countries, including the U.S. and England, that have moved to tighten regulations pertaining to cryptocurrencies in the wake of the $8 billion U.S. collapse last November of the FTX exchange.
