dYdX to Exit Canadian Market
Jessie A Ellis Apr 10, 2023 08:11
Cryptocurrency derivatives exchange dYdX is set to exit the Canadian market due to regulatory restrictions. The exchange will stop onboarding new Canadian users and move existing users to "close-only mode" over the next seven days, allowing them to only withdraw funds. dYdX is hoping for a change in the regulatory climate to resume services in the country.
Cryptocurrency derivatives exchange dYdX has announced that it will be exiting the Canadian market due to regulatory restrictions. In an April 7 blog post, the exchange revealed that it would be winding down services in Canada over the next seven days. The move will begin with halting the onboarding of new users located in the country.
On April 14, dYdX will shift all existing Canadian users to "close-only mode," which will allow them to withdraw funds but not engage in any new transactions. The exchange hopes for a change in the regulatory climate that will allow it to resume services in Canada.
In the blog post, dYdX stated its commitment to providing transparency around product decisions and democratizing access to financial opportunity. The exchange expressed hope that the regulatory climate in Canada would eventually change, enabling it to resume services in the country.
This move by dYdX follows the Canadian Securities Administrators announcing additional restrictions for crypto exchanges' registration requirements in the country. According to the rules, platforms were prohibited from permitting Canadian clients to enter into crypto contracts to buy and sell any crypto asset that is itself a security and/or a derivative.
The regulatory restrictions in Canada have become a growing concern for cryptocurrency exchanges, with many having to shut down or exit the market altogether. It remains to be seen how the regulatory landscape will evolve in the future.
Notably, dYdX faced criticism from users and those in the crypto space in September 2022. The exchange had offered a $25 deposit bonus for confirming someone's identity using a live webcam image. The promotion was later ended, citing "overwhelming demand" rather than privacy concerns put forth.
dYdX is a popular cryptocurrency derivatives exchange that allows users to trade various cryptocurrency assets on margin. The exchange has gained popularity in recent years due to its user-friendly platform and high liquidity.
In conclusion, dYdX's decision to exit the Canadian market highlights the increasing challenges faced by cryptocurrency exchanges in the country. The regulatory restrictions have made it difficult for exchanges to operate, and it remains to be seen how the situation will evolve in the future. Nevertheless, dYdX's commitment to transparency and democratizing access to financial opportunity remains unwavering.
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