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Cryptocurrency exchange Binance is set to withdraw its services in Ontario. This withdrawal comes around the same time as its ban in the UK.
Amid a rising regulatory crackdown in Ontario, Binance announced on Friday, June 25, that it will be ceasing its operation in the most populous Canadian province starting Saturday, June 26. It also advised its Ontarian users to shut down their activities on the platform by the end of this year.
Regulators in Ontario have previously issued notices to crypto trading platforms such as Bybits and Poloniex, after they failed to follow provincial regulations.
Britain's financial regulator, on the other hand, announced its ban on Binance on Saturday. The Financial Conduct Authority (FCA) issued a statement saying that Binance Markets Limited will no longer be allowed to have “any regulated activity in the UK”.
The British regulator also directed for crypto investors to be careful about higher yield promises on digital asset investments.
These developments have come amid clampdown from watchdogs across the world against crypto trading platforms. For instance, the Chinese central bank has asked financial institutions to ban crypto transactions following an extensive ban on crypto mining firms.
Binance has an average daily volume of around US$ billion on its platform, which operates in over 180 countries. The crypto exchange claims to settle 1.4 million transactions per second. It also offers crypto asset services like digital wallets, crypto futures, securities, crypto yield accounts and provides loans on crypto holdings.
What does Binance’s service withdrawal & ban mean for crypto investors?
While the crackdown by financial watchdogs have been causing initial fear, uncertainty, and doubt (FUD) among crypto traders, it could solidify the industry’s future.
In the last 24 hours, Bitcoin jumped as much as four per cent to US$ 34,500 apiece on Monday, June 28 (7AM UTC). This indicates that the crypto market’s bull run may have defied the regulators’ tough actions.
Adding to the market’s positive developments, Mexican banking tycoon Ricardo Salinas Pliego stated on Sunday that his business may start accepting Bitcoin. This could be a big deal for the crypto token as Mr Pliego is the third richest person in the country, with a reported fortune of US$ 15.8 billion.
The rising stringent regulatory actions are an indication of investors’ expanding interest in digital assets. Hence, the latest financial regulator stance may attract more people to join the cryptocurrency space.
Copyright ©2020 Kalkine Media
How is Binance responding to regulators?
On Sunday, Binance posted on Twitter that the firm takes a cooperative approach with regulators, and that it is working with them regarding changing rules and regulations for the crypto market.
Binance Group, based in the British-ruled Cayman Islands, is not the only crypto trading firm to get impacted by the FCA’s crackdown. Most crypto firms have reportedly failed to meet the guidelines under the money laundering law in the UK. The regulator is also said to have witnessed an extraordinary number of crypto asset companies withdrawing their applications.
Please note: The above constitutes a preliminary view and any interest in stocks and cryptocurrencies should be evaluated further from an investment point of view.
