dYdX Quits Canada On April 14 Due To Legal Difficulties
- dYdX has announced that it will withdraw from the Canadian market and that trading support for existing customers will end on April 14. However, users will maintain the ability to withdraw funds from the protocol at any time.
- Starting April 7, transactions will be restricted, and new customers will not be accepted.
- The reason for abandoning the Canadian market is the country’s crypto-related regulations being tightened.
Officially, dYdX announced on Friday that it would withdraw from the Canadian market and that trading support for existing customers would end on April 14.
Starting April 7, dYdX will stop recruiting new users in Canada, but existing users will still have one week to resume trading. From 1 a.m. on April 15, all users in Canada will go into liquidation-only mode, and users can withdraw their funds at any time.
“On April 7 at 17:00 UTC, dYdX will no longer allow new users located in Canada to onboard to the exchange. As part of the wind-down process, we want to provide existing Canadian users ample time to manage and close their positions on dYdX.”
This abandonment is because legal regulations in Canada are being tightened after the economic crisis. The dYdX team states that should the regulatory environment in Canada change in the future, they may continue to provide services in the country.
The creator of a well-known decentralized exchange, dYdX, aims to create strong, reliable, and open financial products. dYdX currently utilizes Ethereum’s audited smart contracts, which do not require traders to trust a centralized exchange.
From the end of February, Canada’s patronage market regulator, the Canadian Securities Regulatory Authority (CSA), will tighten requirements for crypto exchanges operating in the country, according to two people who have been informed of the plan.
The CSA’s increased scrutiny of cryptocurrency trading platforms will impact some of the major global exchanges operating in the country. Earlier, it was also reported that the world’s largest cryptocurrency exchange Binance also announced it could abandon the Canadian market amid the legal chaos. OKX also announced its withdrawal from Canada.
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