- Crypto Derivatives Exchange dYdX declared its departure stating the Canadian customer base would no longer be able to use its decentralised derivatives exchange.
- Existing Canadian users, on the other hand, will only be permitted to execute and close deals as of April 14.
The cryptocurrency derivatives exchange dYdX recently revealed that it will gradually leave the Canadian market, preventing Canadian users from using its services for the next seven days. The exchange announced in a blog post on April 7 that it would be discontinuing its services in Canada, commencing with the halting of the initial setup procedure for new Canadian users.
However, the webpage notification states that dYdX is optimistic that “the regulatory climate in Canada will change over time,” which makes it likely that the most recent modifications to the specifications for cryptocurrency platforms are the main culprit.
The decentralised exchange has announced its desire to eventually be able to operate again on the Canadian market. Canadian users will be switched to close-only mode as of April 14 at 17:00 UTC, however they will still be able to withdraw money from the protocol whenever they want.
Although dYdX does not specify the legislation in question, Canadian regulators recently enacted regulations requiring exchanges to separate crypto assets owned by Canadian consumers from other assets and desist from offering particular services.
It has been speculated that dYdX’s decision to stop serving Canadians was primarily motivated by a change in the regulatory environment.
Although the use of cryptocurrencies and blockchain technology is limited in Canada, the government there claims to be making ongoing, careful efforts to adopt the technology. Canada’s New Budget Declaration first announced consultation on cryptocurrencies and stablecoins in November 2022.
Platforms are “prohibited from facilitating Canadian clients to enter into crypto contracts to buy and sell any crypto asset that is itself a security or a derivative,” according to the new regulations.
Notably, in September 2022, privacy issues were raised by dYdX’s deposit programme for authenticating identity via live webcam photos. The programme was terminated as a result of protest from numerous dYdX users and various crypto players.
A few cryptocurrency businesses, like Blockchain.com and OKX, have also stopped operating in Canada. Others, including Coinbase and Kraken, intend to remain operational.