Topic: Exchanges X Canada (Read 258 times)

If the demand for regulation contradicts the general purpose of the service, while there are no alternative solutions then it is better to withdraw from that country. Or in other words, the new policy may not benefit the exchange in the long run (substantially reduces a significant portion of exchange income).

I'm sorry, I'm not that articulate in expressing myself. What I mean about the big exchanges, I'm reffering to Binance, Bybit, Huobi, and etc they have been dominant for years and when faced with challenges they begin withdrewing from that country.

I guess they don't want someone snooping around on how they deal with their clients money/financial audit.


I'm glad that there are new companies getting involved, experiencing a limited options to transact with is terrible, it's either you comply with their absurd rules or go somewhere else.

No, there are already more than 10 "crypto trading platforms authorized to do business with Canadians."

In my post above, I linked the exchanges that have already complied with the enhanced pre-registration undertaking (PRU), those that didn't and are therefore banned, and those that have already filed their PRUs and are awaiting decision.

"Payward Canada Inc. et al operating as Kraken" has already filed its PRU and is awaiting approval along with Coinbase, Crypto.com, DigiFinex, Gemini, and others.

With this, it isn't true that "other big crypto exchangers don't want to comply with the laws to operate legally" and that there will be a monopoly in the Canadian market resulting to "shitty services with no big developments." There will be competition, tight competition.

^ Kraken already opened in Germany though.

A DEX (dydx) can be forced by government to shutdown seem not convincing for people to already go for DEX for there is no escape still.  Canada is a close ally of US which whatever they do there is also the plan in US.

The positve side of things though is that Europe is open for crypto just as Asia is.

I think the only exchange that will really comply to regulations is Kraken

https://www.coindesk.com/policy/2023/03/30/crypto-exchange-kraken-commits-to-tougher-rules-in-canada/

I don't know why the other big crypto exchangers don't want to comply with the laws to operate legally if this continues we gonna experience a monopolized market. There is no competition between exchangers, we are going to experience shitty services with no big developments.

The List is just about to grow bigger. The latest  exchange to announce plans to exit the Canadian market citing tough regulations is Bybit - https://announcements.bybit.com/article/notice-on-exit-from-canadian-market-bltc1bfb8746d077fda/#

I see it as away of trying to take back control by the Governments. Since they can not control Bitcoin or other cryptocurrencies, then the option is to control the portals of exchange, otherwise I don't think they really care about the safety of user funds. High regulated huge banks have also not so long ago gone bankrupt and collapsed.

I realized long ago people are not interested in a decentralized currency. All they want is to make money by speculating with crypto.
Bitcoin's ideology? Fuck that! Let me join binance, give them my ID and buy crypto, watching the graph all day long and making my 1 dollar profit.
It's sad, but it's the truth. If BTC was a currency from EU central bank, it would be the same.

It reminds me the period when people here joined the first CEX coming because there is an airdrop if you verify your ID, or like with Coinbase, watching videos (or I don't remember what) and get 5$ 

I gave up with them. Ironically, they want a decentralization in politic IRL, but don't care when it's about a currency.

#followthemoney

This is not coincidence at all, Canadian government is becoming pathetic, not even South Park can make jokes with them after this...
It was all part of the plan, and I am sure they are going to do something similar with all countries around the world in future.
Few days ago I saw people in Nigeria posted video of finding bunch of bags full of destroyed paper fiat currency, so they are so stupid they don't even destroy/recycle is properly and they forced eNaira to people 

First close exchanges, or push them away with crazy regulations, than try to do the same with Bitcoin, and finally limit the use of internet, that's the plan.
It's not that I trust any centralized exchanges and guys like CZ, but we should really move on decentralized exchanges, and local P2P trading as soon as possible.

I've kept telling newbies here who see CZ like some sort of revolutionary leader that will make them rich with 2 cents in bnb tokens, CZ right now is probably the most dangerous thing right now to BTC , not to crypto in general as he pumps a ton of shitty tokens and altcoins but for BTC he's an enemy and a real slimy thing, remember how he did the improvements for BTC withdrawals?
- first stop them to panic people and to tarnish BTC reputation
- then apply the ointment as he is planning on implementing LN and allow newbies to crown him again king of innovation!


Lol, on that! First time hearing it but damn is accurate!

100% with you on this.
If every time somebody wants to look at your finances, and you run, 99% of the time it's one of two things.

1) You are cooking the books
2) There are no books

The last small 1% is that even if things are 'legit' so many things done in a non GAAP way that it's never going to look legit.

Going back to the New York think. There are a few places that I would never trust that still jumped through the hoops and got a Bit License to do business in the state.
There are a bunch that said 'we are legit but not going to do that' Yeah...sure....

-Dave

GAAP=  https://www.ojp.gov/sites/g/files/xyckuh241/files/media/document/GAAP_Guide_Sheet_508.pdf

It's not looking great with the U.S either[1][2]


But I think this is all good for the crypto space, the last thing we want is for Binance to control the whole marketshare.

[1] https://www.reuters.com/legal/crypto-exchange-binance-its-ceo-sued-by-cftc-over-regulatory-violations-2023-03-27/
[2] https://www.coindesk.com/business/2023/05/11/binanceus-explores-ways-to-decrease-czs-dominant-share-the-information/

Yep, Binance just drop the news about going out of Canada. It was about the stablecoin where the regulations require exchanges' approval from Canadian Securities Administrators (CSA) in order to operate and allow users to trade stablecoins.

For them, I guess necessary to avoid FTX all over again. But I think it's more likely they are cracking down first and then ironing out the regulation before allowing those exchanges back to operate again.

What Canada tries to do here is exactly what Japan did and made all those shady exchanges (including Binance) flee the country.
The biggest thing that prevents them from following the new rules is this:


Oh no, what a surprise, after fleeing Singapore, HK, Japan, and Malta, despite being fully compliant they are the first to flee when laws are actually going to be enforced. Funds are #SAFU /s

I'm thinking there's something else at play here. at least here in New York Gemini & Coinbase ( which are the only two centralized exchanges I still bother with) block certain things due to New York regulations.

I'm sure other exchanges if they wanted to that already have all your location information, can just as easily block you from dealing with whatever would cause problems. To blame it on stable coins seems a bit disingenuous.

I can't stake etherium because I'm in New York. I don't think I could use USDT either because I'm in New York.
They offer other services that I can take advantage of on the exchanges that operate here.

-Dave

Great timing Canada! Now the government launches public consultations on a digital dollar
https://www.bankofcanada.ca/2023/05/bank-canada-launches-public-consultations-digital-dollar/

No digital money when it's a stateless currency but why not if it's a digital CA$.
"Hello! Bank of Canada here. We would like to ask you what you will like to see for a digital currency!"



I remember last year, there was a big social protest (Canada convoy protest) and the government banned any donations given in bitcoin. It was surely used to try to silence the protests.

A few months ago, the Prime Minister said he considers that any leader advocating for the adoption of cryptocurrencies is irresponsible.
https://twitter.com/WatcherGuru/status/1569608240975220736
https://cointelegraph.com/news/canadian-pm-justin-trudeau-says-investing-in-crypto-is-not-an-escape-from-inflation

Businesses can still operate but there are conditions and one of them is to get a licence. A licence hard to get...

Thinking about it: they're doing the same as Europe and the US are doing recently... So, not so surprising...

While this may not necessarily prevent another FTX-scenario, at least measures are taken or enhanced to further protect Canadian customers. I don't see any problem with this. As a matter of fact, I'm highly in favor of this, of tightly regulating centralized exchanges.

This is simply about compliance. If you want to operate in Canada, make the most of the market there, toe the line, comply with the enhanced pre-registration undertaking. If you won't comply, leave. It's as simple as that.

The problem, however, is the prohibition of leverage trading and the use of stablecoins. If an exchange offers these two, no amount of compliance will keep them there. Either they make the necessary adjustments or they will have to pack up and leave.

Anyway, for the guidance of everybody, here are the exchanges that are allowed to operate, exchanges that are banned, and exchanges that have already filed the enhanced pre-registration undertaking.


If the cats are away, the mice will play. The playground is theirs. So if I were a small exchange, I will make sure that I complied and passed the enhanced requirements. The wide Canadian market will be ours.

Bitbuy is "authorized to do business with Canadians." This enhanced pre-registration undertaking is actually a blessing in disguise for these smaller exchanges. Popular competitors like KuCoin and Poloniex are already banned. And with the long list of those that are about to shut down their operations, the smaller players must be happy.

I checked the website just now and it seems they do offer stablecoin, but only USDC[1]. Does this mean the Canadian government allows exchanges to use USDC if they want to, or will this change too? At the very least I can see how they don't want to make exposure to BUSD or similar tokens as easily as before if they can't control it at all.

[1] https://bitbuy.ca/how-to-buy-in-canada/usd-coin

Not able to access Bitbuy since my IP address is blocked, but it's likely because Bitbuy does not offer stablecoin products to the locals in Canada, or they decided to bend down to the rules stated to them by the Canadian Regulators. Binance on the other hand believes that bending down to the new regulations is not worth a hustle for them since they have other places to offer the service. At least that's what I understand from the message they sent.

It looks like Binance is also joining the pack[1]. According to their statement, this is related to new guidance related to stablecoins.

I'm wondering how can smaller local exchanges like Bitbuy continue to run when these big companies are shutting down one after the other.

[1] https://twitter.com/binance/status/1657099651210969088

I think that the reason is the great exposure to cryptocurrencies without experience, specifically many countries have become stricter after what happened with FTX, so it is not a war as much as an attempt to preserve clients' money.
I remember starting a similar discussion Canada Requires Pension Funds to Disclose Crypto Risks