On March 20, the cryptocurrency exchange OKX informed Canadian users via email that the company “will no longer provide services or allow users to open new accounts in Canada starting March 24, 2023 at 12:00 am EST, citing “new regulations.” According to OKX, existing Canadian clients must close open positions in options, margins, perpetuals, and futures by June 22, 2023. Fiat money or tokens must also be withdrawn by said date.
“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 cryptocurrencies to your self-custody wallet or to your cryptocurrency account in another exchange.
OKX claims that its withdrawal from Canada is “temporary”, and that the exchange is working with regulators to resolve this issue. “We hope to see you again in the future. Stay tuned,” the OKX staff wrote. Previously, Canadian users were unsubscribed by cryptocurrency exchange Bittrex Global on July 29, 2022, after giving advance notice, which, too, cited regulatory developments as reasons for leaving the country.
On February 22, the Canadian Securities Administrators (CSA) published a notice requiring exchanges to sign new legally binding commitments while awaiting registration with the regulatory body. Among many other points, The new commitment prohibits “purchasing or depositing value-referenced crypto assets (commonly referred to as stablecoins) through crypto contracts without the prior written consent of the CSA.” Although looks that the stablecoin USD Coin (USDC) has not been affected by the ruling.
Currently, all cryptocurrency exchanges must register with Canadian regulators before registering users in the country. On June 22, 2022, cryptocurrency exchanges ByBit and KuCoin were fined in the millions after the Ontario Securities and Exchange Commission determined that both were operating as “unlawful platforms” in the country.
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