In a significant move, the Bitstamp cryptocurrency exchange has announced its plans to cease operations in Canada by January 8, 2024. This decision comes as a response to the evolving regulatory landscape and follows the footsteps of other major exchanges like Binance and Bybit, which recently exited the Canadian market.
Bitstamp’s CEO, Bobby Zagotta, expressed gratitude to the exchange’s Canadian clients, emphasizing that this choice was not made lightly. While he hinted at the possibility of returning to the Canadian market, for now, all Canadian accounts will be closed, with access terminated after the specified date.
Bitstamp Withdrawal Deadline Set: Users Given Until January 8 to Act
Bitstamp users based in Canada have been given a deadline of January 8, 2024, to withdraw their funds. After this date, access to their accounts will be terminated, and users will be expected to deactivate their Bitstamp accounts. This step is in line with a growing trend of cryptocurrency exchanges choosing to withdraw from the Canadian market.
Earlier this year, exchanges like OKX, Paxos, and dydx also exited. Notably, Binance, when announcing its departure, cited new guidelines related to stablecoins and investor limits as a primary reason for its exit. Subsequently, Bybit also clarified its intentions, urging users to close their positions by the end of September.
Also Read: Bitstamp To Discontinue Staking Services In The US
CSA’s Influence on the Canadian Crypto Landscape
The Canadian Securities Administrators (CSA) had previously set a deadline for crypto asset exchanges to register with them by late March. This registration was aimed at ensuring exchanges met specific pre-registration requirements. However, the CSA, on October 6, disclosed potential allowances for trading specific stablecoins.
These allowances come with terms and conditions, including a requirement for stablecoin issuers to maintain an “appropriate” asset reserve with a qualified custodian. It’s important to note that these adjustments don’t represent a significant shift in the CSA’s overall stance on cryptocurrency.
The CSA has made it clear that meeting these interim conditions should not be misconstrued as an endorsement or approval of the asset, emphasizing their commitment to ensuring the safety and integrity of the Canadian crypto landscape.