The exchange stated, “We hope that the regulatory climate in Canada will change over time to allow us to resume services in the country.
In a move to exit the market, cryptocurrency derivatives exchange dYdX has stated it is going to ban Canadian user accounts over the next seven days.
In a blog post on April 7, dYdX stated that it will be “winding down services” in Canada, beginning with stopping the onboarding of new members who are based there. All current Canadian customers will be switched to “close-only mode,” allowing them to only withdraw money, starting April 14.
The exchange stated, “DYdX is committed to delivering transparency around selecting products and democratizing access to financial opportunities. “We hope that over time the regulatory environment in Canada will change to enable us to resume services there.”
The action came after the Canadian Securities Administrators announced additional restrictions on the country’s registration requirements for cryptocurrency exchanges. Platforms were prohibited by the regulations from allowing Canadian clients to enter into contracts to buy and sell any cryptocurrency that is a security or derivative in its own right.
Many dYdX users and people working in the cryptocurrency space criticized a promotion run by the decentralized exchange in September 2022 that offered a $25 deposit bonus in exchange for someone’s identity being verified using a live webcam image. Later, the exchange terminated the program, claiming “overwhelming demand” as opposed to some of the raised privacy issues.