Crypto Exchange OKX to exit the Canadian market by June 2023 due to new regulations
The crypto market has faced a wave of regulatory changes in recent years, prompting many crypto firms to rethink their operations and even leave certain countries altogether. The latest example of this trend is the announcement by crypto exchange OKX that it will cease operations in Canada by June 22, 2023.
OKX becomes the latest victim of intense regulations
In a shocking twist, popular cryptocurrency exchange OKX announced it would exit the Canadian market by June 2023, leaving thousands of users scrambling for alternatives.
OKX sent an email to its Canadian users on March 20, informing them that as of March 24, 2023, at 12:00 PM 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, perpetuals and futures by June 22, 2023. In addition, fiat or tokens must be withdrawn by the same date. The company 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-custodial wallet or your cryptocurrency account on another exchange.”
The OKX exchange stated that the departure from Canada is only temporary and it is working with regulators to resolve the matter. OKX staff expressed their 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 abandoned Canadian users on July 29, 2022, citing regulatory developments as the reason for leaving the country. However, Bittrex Global had given 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 22, mandating cryptocurrency exchanges to sign new legally binding commitments pending registration with the regulator. The new measure includes several provisions, such as a ban on buying or depositing Value Referenced Crypto Assets (also known as stablecoins) through crypto contracts without the prior written approval of the CSA. However, stablecoin USD Coin (USDC) appears to have been unaffected by this ruling.
Currently, Canadian regulators require all cryptocurrency exchanges to register before allowing users in the country. On June 22, 2022, ByBit and KuCoin, two cryptocurrency exchanges, received significant fines after the Ontario Securities Commission found that both were operating as “non-compliant platforms” in the country.
