Binance Canada's exit leaves the crypto community divided

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Binance’s choice to withdraw from Canada sparked strong reactions from the community.
While many blame Canadian regulators, others have drawn different conclusions.
Binance has been under increasing regulatory scrutiny globally since the collapse of FTX.

In the aftermath of the FTX collapse, global regulators have tightened their grip on the crypto industry. On the other side of these regulations are crypto exchanges like Binance. In the latest shocking development for the industry, Binance has decided to leave Canada.

The move sparked heated debate, both within the crypto community and in the broader technology and finance community. The public response was divided between criticizing Canada for its hawkish approach and Binance’s lack of transparency.

After facing increasing global scrutiny, the world’s largest stock exchange revealed its decision on Friday, May 12th. Since the FTX crash, Binance has struggled organizational challenges in many countries.

Unfortunately, today we are announcing that Binance will join other prominent cryptocurrency companies in preemptively withdrawing from the Canadian market.
We would like to thank the organizers who have worked collaboratively with us to meet the needs of Canadian users…
– Binance (binance) May 12, 2023

However, the exit from Canada struck a special chord because the founder and CEO of Binance, Changpeng “CZ” Zhao, Holds Canadian citizenship.

Critics From this quick move to express their displeasure. Many users have claimed that Canadian crypto regulations stifle innovation in the space. “Canada is getting worse and worse Every day,” one user complained.

“Canadian regulators are toxic for the growth of cryptocurrencies. a period. Cryptocurrency enthusiast reacted to the news.

The statement captures a growing frustration between certain segments of the crypto community over what they see as anti-crypto regulation. Cryptocurrency supporters are increasingly complaining about countries like Canada and the United States over their regulatory stance on cryptocurrencies.

However, not all reactions were negative. Some users saw this as an opportunity to focus on decentralized finance (DeFi). “It just proves that we need to Start using DeFi more Instead of TradFi for crypto, one user said in response.

Responses like this echo calls since the collapse of FTX to move toward more Decentralized financial solutions. Many crypto proponents have argued that FTX was a failure of centralization, not cryptography.

Binance critics point to a lack of transparency

However, not all users criticized Canada. Some blamed Binance itself. For example, one user suggested that he exercise more on Binance Transparency in its operations. Why Binance Afraid of the regulators? one user asked.

Binance has been on the receiving end of criticism for a Lack of transparency for years. At the same time, the exchange also faced regulatory issues in several countries. For example, in April, Binance Australia Lost derivatives license after target revision. Also in April, Binance Finally returned to Japan After years of absence due to compliance issues.

In March, the US Commodity Futures and Trading Commission sued Binance and CZ for their operation illegal exchange. Since the CFTC lawsuit, Binance US has had a hard time finding it banking partners in the country.

on the flip side

When Binance leaves the country, other exchanges will fill the void and grab market share.
In September 2021, the Canadian financial regulator Tether banned (USDT), a Controversial cipher origin And the largest stablecoin.