Canada’s securities watchdog has published updated guidelines on digital assets for mutual funds, prohibiting investment in or holding digital assets directly.
The Canadian Securities Administrators says digital asset firms are listing fake regulators to gain credibility and called on investors to be cautious.
Binance joins fellow "crypto" exchanges Coinbase and Kraken in exiting the Canadian marketplace as the country tightens its regulatory muscle against unregistered trading platforms.
Paxos follows exchanges OKX and dYdX which have announced exits from Canada at a time when regulators have enforced new and tougher regulatory measures.
Canadian regulators have been shoring up digital currency regulatory loopholes and demanding better from VASPs, and OKX is unable to adhere to the new regulations.
To safeguard investors, Canada enhances its regulatory control of VASPs, which includes restricting them from offering stablecoins to customers and segregating digital assets held for local clients.
Part of the new measures outlined by the Canadian Securities Administrators includes prohibiting service providers from allowing customers to trade digital assets that are considered securities or derivatives.
Seeking to protect users from buying more assets than their financial positions can handle, one Canadian exchange has limited annual limits, with BTC and ETH exempted.
The Canadian Securities Administrators says that digital asset trading platforms are expected to file a "pre-registration undertaking" while their license application is under review.
The new guidance also aims to swipe so-called “gambling style” promotions used by some digital currency exchanges, which it says are responsible for unwise investment behaviors.
Seychelles-based Poloniex is accused of trading securities without registering with the Canadian Securities Administrators as required by the Ontario Securities Act.