YCombinator No Longer Invests in Canadian Startups

I know there are a few people based in Canada and interested in startups on here, I saw this news today.

Very interesting, I wonder why they did this - does Canada have strict business/startup laws and regulations?

I read the workaround is to just register and incorporate within the US, which isn't complicated but is probably just more cost-prohibitive and annoying for people in Canada.