Binance started business in 2017 and ever since it has become the largest crypto exchange in the world. Registered in the Cayman Islands, the exchange is based in China and has been at the forefront of cryptocurrency exchange, NFTs, DeFi, etc. However, in past one year, the scope of business for Binance has come down with authorities from the UK, Japan, and several others have closed doors for the exchange.
In a similar turn of events, Ontario Securities Commission cracked down on several exchanges including ByBit, Poloniex, and KuCoin. Statements of allegations were issued by the Canadian authorities stating failures to comply with the policies. This is when Binance also decided to pull away from Ontario’s market.
“Authorities all over the world are continuously looking into regulations to manage the crypto markets. Some have cracked down on businesses, while others found a way to integrate them into the system. Most Governments are worried about the lack of monitoring in the space. Centralized crypto exchanges and blockchain businesses have the advantage of cooperating with the authorities and working towards mutually beneficial regulatory practices. Decentralized exchanges may find it more difficult to achieve this though.” says Dev Sharma, founder and CEO of Blockwiz, a Canada-based crypto marketing agency.
However, the recent announcement from Binance comes as a sigh of relief for a lot of people, not just in Ontario. The largest Canadian market by population, Ontario users were advised to clear all positions before the end of 2021. But just before the year ended, Binance announced that it is permitted to operate in the market after complying with several practices.
Binance has begun registration as a Money Services Business with FINTRAC. This will allow Binance to continue business while the registration process completes. FINTRAC is Canada’s national financial intelligence agency. “Binance registering in Canada and the possibility that crypto exchanges can find a way to comply with authorities is a positive sign for the industry. One of the biggest roadblocks for blockchain businesses was the regulatory bans happening every now and then around the world. However, the collaborative efforts by Binance and Canadian authorities can pave the way for legal acceptance of the industry itself. It will take some time, but the time will only decrease as more and more authorities collaborate with each other and businesses to create policies for inclusion and protecting national interests.” added Mr. Sharma of the Canadian agency.
The Canadian authorities did not comment on the matter, neither did Binance on the regulatory practices. The scope of this collaboration and its future applications remains unknown as of now. But the signs are clear, from closing shop by the end of the year to being able to continue before the year ended, the industry is only going to progress.