Tag: cryptocurrency exchange

Binance Pulls Out of Canada Amid Tightened Crypto Regulations

Binance said on Friday it was withdrawing from Canada, weeks after the country issued a series of new guidelines for cryptocurrency exchanges including investor limits and mandatory registrations.

Canada has tightened regulations for crypto asset trading platforms in recent months, with the introduction of a pre-registration process. The companies that do not adhere to the rules will face potential enforcement action, according to the website of the Ontario Securities Commission.

“Unfortunately, (the) new guidance related to stablecoins and investor limits provided to crypto exchanges makes the Canada market no longer tenable for Binance at this time,” crypto exchange Binance said in a tweet.

Binance said it does not agree with the latest guidance and hopes to engage with the Canadian regulators to create a comprehensive framework for crypto operations in the country.

“We are confident that we will someday return to the market when Canadian users once again have the freedom to access a broader suite of digital assets,” said the crypto exchange, founded by Canadian national Changpeng Zhao.

The digital assets industry has been in the crosshairs of regulators around the world, especially since the collapse of Binance-rival FTX in November, which triggered a market rout in the prices of the biggest digital coins.

Following the onset of the crypto winter of 2022, which wiped out more than a trillion dollars from the industry’s market value, lawmakers and securities regulators demanded tighter guidelines for disclosures on how the crypto companies operate and hold customer funds.

In March, Binance and its CEO Zhao were sued by the US Commodity Futures Trading Commission for operating what the regulator alleged was an “illegal” exchange and a “sham” compliance program.

© Thomson Reuters 2023

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Russia to Improve Crypto Transaction Monitoring as Regulation Draws Closer, Says Rosfinmonitoring

Russia’s financial monitoring agency, Rosfinmonitoring, said on Friday it was using software to track cryptocurrency transactions and hopes to improve its capabilities, as Moscow ushers in regulation on what one lawmaker dubbed “cryptomania”.

The Bank of Russia has long voiced scepticism over cryptocurrencies, citing financial stability concerns, and has advocated for a complete ban on trading and mining, at odds with a government keen to regulate the industry.

Russia has already identified specific criminal cases involved in cryptocurrencies, said Rosfinmonitoring’s head Yuri Chikhanchin, adding that the agency wants to improve its systems and identify transactions and blockchains that are currently hidden.

Chikhanchin said it was not currently possible to cover everything, partly because not all countries are so eager to regulate the industry.

“It is very difficult when cryptocurrency accounts go into the unregulated zone and we don’t understand who is on the other end,” he said. “But I think we will still solve this task.”

The blockchain technology on which cryptocurrencies are based records transactions, but not the identity of wallet-owners, making them difficult to track.

Anatoly Aksakov, head of the financial committee in Russia’s lower house of parliament, on Thursday said draft legislation on regulating cryptocurrencies would be put to the house in the autumn.

“Obviously there will be strict regulation,” Aksakov said, comparing “cryptomania” to addiction in the gambling sector, which is tightly regulated in Russia.

“The same needs to be done with crypto exchanges and trading,” he said. “The phenomenon exists and it cannot be ignored.”

The crypto industry has been in the crosshairs of regulators, who worry that a recent meltdown in the volatile market could hit the broader financial sector.

The slump – sparked by the downfall of two major tokens in May – has led to crypto lender Celsius pausing withdrawals and Singapore-based crypto hedge fund Three Arrows Capital entering into liquidation.

Russia’s central bank has said it is open to allowing cryptocurrencies to be used for international settlements and has approved other digital asset transactions.

Aksakov also expects a cryptocurrency mining law to be considered soon, an area the government hopes to tax.

Unlike payment companies, most crypto exchanges initially rejected calls to cut off all Russian users, sparking concerns among US lawmakers that digital assets could be used to evade Western sanctions on Moscow over its actions in Ukraine.

Major exchanges said they would comply with sanctions by blocking sanctioned users. In April, Binance froze deposits and trading for Russian users with crypto assets of more than EUR 10,000 (roughly Rs. 8.08 lakh).

© Thomson Reuters 2022

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