Decentralized crypto exchange dYdX is shutting down its services in Canada, citing the regulatory climate in Canada.
Subscribe to our Telegram channel to get daily short digests about events that shape the crypto world
The exchange said in a blog post it has already stopped onboarding new customers in the region. By April 14, dYdX will move all existing users in Canada to "close-only mode," leaving the customers with the ability to withdraw funds. The exchange added it hopes that crypto regulation in Canada will change over time "to allow us to resume services in the country."
In February this year, the Canadian Securities Administrators (CSA) strengthened oversight of crypto-related companies, saying "recent insolvencies" highlight the tremendous risks associated with trading crypto assets.
The CSA added all crypto businesses which operate in Canada are expected to go through an enhanced pre-registration process before April 2023. The pre-registration should include a detailed description of how clients' funds are stored and segregated. The businesses also have to confirm they do not offer margin, credit, or other forms of leverage to any Canadian client.
Access more than 50 of the world's financial markets directly from your EXANTE account – including NASDAQ, London Stock Exchange and Tokyo Stock Exchange