Binance Binance exits Canada, top cryptocurrency platforms

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Binance Binance exits Canada, top cryptocurrency platforms

According to Coinmarketcap rankings, Binance, the world's largest platform by volume, exited Ontario in June. The Logic analysis of the 10 platforms ranked highest by Coinmarketcap shows that competitors FTX, Kraken, Huobi, Bitfinex, Crypto.com and Gate.io have placed restrictions on Canada, Ontario or Quebec-based customers ranging from restrictions on services like futures and margin trading to outright bans. We apologize, but this video hasn't loaded.

Click here to see other videos from our team. Most of the best-known international ones have opted to leave the Canadian market, causing restrictions or bans on users in the country, despite the fact that more big international platforms restrict use of Canadians. Some of the time and money are put into compliance with the registration requirements, including Coinbase, which has been incorporated in Canada.

The companies did not respond to The Logic's request for comment. Andrei Poliakov, chief executive and co-founder of Coinberry, a Toronto-based platform that became the second in Canada to get securities regulators approval to operate, said he is pleased with the effect regulation is having on the sector. He said it is frustrating that some foreign competitors seem to flout the law without consequence because many foreign competitors have chosen to leave the country or place restrictions on customers. Poliakov said that they welcomed the maturing of the industry. It's in the interest of both the industry and consumers to shut down platforms that are not at that level. Canadian securities regulators announced their crackdown on the criptocurrency-trading platform industry in March, a week after The Logic reported on an explosion of platforms offering services to Canadians without being registered as dealers. Anyone who missed the deadline would face enforcement of the rules, as the Ontario Securities Commission gave platforms three weeks to start the compliance process. The OSC has so far tried to impose cease-trade orders and administrative penalties on four platforms it alleges failed to meet the deadlines: Poloniex KuCoin ByBit and OKEx, which restricts Ontarians from using the platform, and OKEx limits both Ontario and Quebec residents. ByBit's website lists only restrictions on Quebec residents, while KuCoin's website does not disclose any restrictions on Canadians, and as of Friday it remains possible to register an account with an Ontario address. KuCoin didn't respond to a request for comment.

Some large foreign platforms are opting to withdraw out of Canada rather than register with securities regulators. Jaclyn Sales, a spokesman for Delaware-incorporated Coinbase, told The Logic that the company wants to remain active in the country and is in talks with Canadian authorities. Sales said in an email that they were committed to our Canadian business and our customers in Canada. We are working to make sure that our business is in full compliance with this year's regulatory developments, and we are engaged with the securities regulators in Canada. Coinbase incorporated Coinbase Canada, Inc. in B.C. According to the corporate registration documents, the company was registered in Alberta and Ontario in December 2020. The company sells itself as the most trusted place for cryptocurrencies in Canada, and there is no restrictions on Canadian Coinbase users.

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The man who stole the NFTs and a crowdsourced bid to buy the constitution falls short Bitstamp, the platform ranked 10th by Coinmarketcap, doesn't seem to place any restrictions on Canadian customers. Brina Cernetic, a spokesman for Bitstamp, said in an email that the company couldn't comment on why it hasn't imposed any restrictions or whether it is working with Canadian regulators because it would be in breach of the confidential commitments we have made. Matthew Burgoyne, head of the McLeod Law group in Calgary, said he represents some international criptocurrency platforms that are seeking registration in Canada. He said that the country is a small market as they assess whether it is worth the time and cost to register. Canada is not a top priority for them. Asked to comment on the fact that seven of the 10 biggest international criptomes have placed restrictions on Canadian customers, while KuCoin continues to offer its services despite enforcement action, OSC senior public affairs specialist Kate Ballotta said in an email that as a general practice we do not comment on, or confirm, the status or nature of registration and compliance discussions we undertake with firms. Dustin Walper, the chief executive of Toronto-based criptocurrency trading platform Newton, who is seeking registration with regulators, said the exit of some foreign platforms from Canada has been good for business. He said that deposits at Newton went up in June after Binance announced Ontario customers had until December 31 to close out their positions, which he attributed to people leaving Binance and other unregistered platforms. He said that it's a benefit to Canadian companies that it allows them to have a bit more of a leg up. It means that everyone is on the same playing field. To learn more about cryptocurrencies and the industry, register for Financial Post's free virtual event series FP CryptoDecoded presented by NDAX. FinancialPost.com is a website operated by FinancialPost.com.