Cryptocurrency derivatives exchange dYdX has announced it is withdrawing its services from the Canadian market. Starting 17:00 UTC on April 9, 2021 no new users will be onboarded and its current Canadian users will still have full access to the platform until April 14, 2021, maintaining the right to exit their positions and withdraw their capital after the stated date. This move follows the regulations published by the Canadian Securities Administrators in February 2021. DYdX noted that, although it is exiting the market, it hopes the regulatory climate will change in the future, thus allowing it to resume its operations in the country. On the same day of the announcement, the DYdX token was trading at $2.45, dropping around 5.4%.
DYdX is a derivatives exchange that allows users to trade Bitcoin, Ethereum, and other digital assets through margin trading and contracts, including a range of options. Although the exchange’s headquarters is based in San Francisco, the company was licensed in Canada and enabled Canadian users to start trading on its platform.
On February 18, 2021, the Canadian Securities Administrators published new regulations that warned crypto exchanges and trading platforms to comply with “enhanced investor protection commitments”. This announcement caused a stir in the markets, leading dYdX to begin its process to withdraw its services and exit the Canadian market.
Currently, Regulatory Sandbox grants or no-action letters appear to be the route companies looking to offer services in the Canadian crypto space must take, as companies continue to be faced with a lack of clarity regarding how to secure a license that meets the Canadian authorities’ criteria.
Despite the exit from the Canadian market, dYdX continues to be seen and is making a name for itself, offering innovative new services. On April 8, the exchange launched its new platform for permissionless private shares that allows users to buy, sell, and hold digital securities is a way which maximizes privacy and liquidity.
Overall, these decisions indicate that the regulatory landscape in Canada is still uncertain and the authorities are still uncertain about the services of cryptocurrency exchanges and trading platforms. Despite the roadblocks, DYdX reiterated that it is still optimistic about operating in the country in the future.
Lucas Martin
- 2023-04-07
DYdX Sets To Exit Canadian Market
Cryptocurrency derivatives exchange dYdX announced it is withdrawing its services from the Canadian market due to new regulations, although the company still hopes for a friendly regulatory climate in the future.
