The crypto market has been facing a wave of regulatory changes in recent years, causing many crypto firms to reassess their operations and even exit certain countries altogether. The latest example of this trend is the announcement by crypto exchange OKX that it will be ceasing operations in Canada by June 22, 2023.
OKX Becomes the Latest Victim of Intense Regulations
In a shocking turn of events, the popular cryptocurrency exchange OKX announced that it would be exiting the Canadian market by June 2023, leaving thousands of users scrambling for alternatives.
OKX sent an email to its Canadian users on March 20th, informing them that as of March 24th, 2023, at 12:00 AM EST, they will no longer be able to open new accounts or access services due to new regulations. Current Canadian users are required to close all positions in options, margins, perpetual, and futures by June 22nd, 2023. Additionally, fiat or tokens must be withdrawn by the same date. The firm said,
“Your funds will remain safe in your account until you withdraw them. You will be able to withdraw dollars to your linked bank account and cryptocurrency to your self-custody wallet or your cryptocurrency account on another exchange.”
The OKX exchange stated that its departure from Canada is only temporary, and it is collaborating with regulators to resolve the matter. The OKX staff expressed the desire to welcome Canadian users back in the future and advised them to stay tuned for updates. Similarly, Bittrex Global, another cryptocurrency exchange, had previously off-boarded Canadian users on July 29, 2022, citing regulatory developments as the reason for leaving the country. However, Bittrex Global had provided advance notice before taking this step.
Canadian Crypto Regulations Are Obstacles to Crypto’s Growth
The Canadian Securities Administrators (CSA) issued a notice on February 22nd, mandating cryptocurrency exchanges to sign new legally binding undertakings while waiting for registration with the regulatory body. The new undertaking includes several provisions, such as a prohibition on purchasing or depositing Value Referenced Crypto Assets (also known as stablecoins) through crypto contracts without the prior written approval of the CSA. However, it seems that the stablecoin USD Coin (USDC) has not been impacted by this ruling.
At present, Canadian regulators require all cryptocurrency exchanges to register before allowing users in the country. However, on June 22, 2022, ByBit and KuCoin, two cryptocurrency exchanges, received substantial fines after the Ontario Securities Commission found that both were functioning as “non-compliant platforms” in the country.
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