Cryptocurrency derivatives exchange dYdX has announced its exit from the Canadian market through a gradual process that restricts users in Canada from accessing their services over the next seven days. In a blog post shared on April 7, the exchange revealed that it would be winding down its services in Canada, starting with suspension of onboarding procedures for new Canadian users.
Users will be able to withdraw funds from April 14
On April 14, the exchange will transition all existing Canadian users to a “close-only model,” allowing them to withdraw funds but not engage in further transactions.In its statement, dYdX affirmed its commitment to providing transparent product decisions and democratizing financial opportunities. The exchange also expressed hope that the regulatory climate in Canada would evolve, permitting the resumption of services in the country.
DyDx blames regulatory issues for its closure
The decision by dYdX to leave the Canadian market was caused by additional regulations passed down by the Canadian Securities Administrators, which increased the registration requirements for crypto exchanges in the country. Among the rules mandated by the updated regulations includes platforms being “prohibited from permitting Canadian clients to enter into crypto contracts to buy and sell any crypto asset that is itself a security or a derivative.” Notably, in September 2022, dYdX’s deposit program for confirming identity using live webcam images causing some privacy concerns. It received backlash from many dYdX users and various crypto players leading to the program’s termination.
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