Bonjour! Welcome to Coinsauce's Roundup🗞️, your hub for daily crypto updates. Today we will provide our insights about why multiple crypto exchanges have recently been waving goodbye to Canada! Let's jump right into the details 👇️ 

Au revoir Canada 👋 

In the past 90 days, a notable shift has occurred in the Canadian crypto landscape, as three major exchanges have bid farewell to the Great White North. These exchanges include industry-dominating CEXES such as 👇️ 

1. Binance (May, 2023)

2. OKX (March, 2023)

3. ByBit (June, 2023)

All these exits stem from the implementation of new regulations by the Canadian Securities Administrators (CSA), the nation's securities regulator.

It all started in March 2023, when CSA introduced new rules, i.e – “Staff Notice 21-332: Pre-Registration Undertakings” in the name of investor protection 😓 

These new rules mainly changed 3 things, prompting exchanges to flee from the market.

1. Stricter registration process for exchanges

2. Ban on exchanges’ cash cow

3. New investor limits

Stricter registration process for exchanges 🔴 

Prior to March 2023 📆 :

There was no specific registration process for exchanges with the CSA. Exchanges simply had to register with the provincial regulator, adopt the required policies, and appoint a compliance offer to be given the green light to operate in the country.

Fast forward ⏩️ :

Fast forward to March 2023, it seems that the CSA got serious. The CSA introduced a 6-step registration process for crypto exchanges, and failing to comply would mean a cease trade order against the exchange. Just like that, gone were the days of a casual registration process and ease of business operations.

Ban on exchanges’ cash cow ❌

Included in the registration was also a ban on the biggest cash cow for crypto exchanges – derivatives traded.

The CSA prohibited crypto exchanges from offering margin trading and leveraged trading within the country 🚫 

Binance, OKX and Bybit are the top 3 exchanges by derivatives trading volume, processing over $50 Billion in derivatives every day. Derivative products generally attract an average of 4-6 times the trading volume as compared to spot offerings, which means that most of the trading fees collected by exchanges mainly come from their derivatives offerings.

A ban on this is most likely the main reason for exchanges bidding farewell to the country 🙊 

New investor limits 🤷 

On top of this, the CSA also set investor limits to “protect retail investors” from investing in crypto products, claiming the highly risky nature of these assets.

• For retail investors → limit of up to $100,000

• For businesses → limit of up to $250,000

And unsurprisingly, these limits did not apply to HNI investors. (individuals with a net worth of over $1 million or an annual income of $200,000) 🤦 

With the departure of three of the biggest exchanges, it's clear that the CSA's regulations have delivered a punch to the Canadian crypto scene. We expect more exchanges may soon join, given the nature of regulations being approved.

Remember, your funds are always safe and protected if you store them in a hardware wallet. While crypto exchanges and hot wallets provide the convenience required to store your tokens, safety is always compromised due to their centralized nature. At Coinsauce, we advise you t always stay alert, invest in a cold wallet, and HODL safe 💪 

Meme of the day

How Canadian regulators approach crypto regulations 😂 

And that's all for today's roundup. We hope you found our insights valuable and informative. Subscribe to our newsletter for such premium content to help you stay in the loop with the cryptoverse. Until next time, HODL safe❗️

Disclaimer: This newsletter is educational and does not constitute financial advice. You must exercise caution and conduct your research before making any financial decisions.

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