In Montreal an Airbnb cought fire and killed 6 guests and one tenant because the owner converted a house to multiple Airbnb ignoring all regulation (including fire marshal rules)
Airbnbs were already illegal in the old port before that event. The company still allowed them to be posted. I'm quite sure the province didn't ban them too, there are still legal postings. Unfortunately, not much happened after this event. Media pressure made it so that Airbnb closed a bunch of illegal ads, but without legislation and enforcement its only temporary.
Tbh I never looked before all this went down (cause why would I lol), so maybe there were changes and it wasn’t a “all airbnbs are banned” sort of thing. Maybe it removed a lot of listings.