dYdX To Pull Out Of Canada, Crypto Exchange To Cease Services To Canadian Users

• The DeFi crypto exchange dYdX has announced that it will stop offering its services to users based in Canada.
• The platform has already ceased onboarding new Canadian customers.
• The news prompted the DYDX token to decrease by 4.7%.

Cryptocurrency traders in Canada will soon be unable to utilize the decentralized DeFi exchange dYdX. The exchange recently declared that it will be ceasing its services to Canadian users, and will be exiting the country in the near future. This move is in response to changes in Canada’s regulatory landscape, which is now more focused on compliance and consumer protection.

As per a blog post on the dYdX website, the platform has already blocked newcomers from Canada. All current customers from the country will have until April 14th, 2023, to close all open positions on the exchange. On this date, the system will move these users to a close-only mode, which will enable them to withdraw their funds at any time.

The Deprecation Warning highlighted the unexpected nature of dYDx’s decision. It stated that the move was due to the evolving regulatory climate in Canada, which has imposed stricter rules and regulations on crypto exchanges, including custodial requirements, increased oversight and a ban on margin/leverage.

“As always, dYdX is committed to providing transparency around product decisions and democratizing access to financial opportunity. We hope that the regulatory climate in Canada will change over time to allow us to resume services in the country,” the post concluded.

The announcement led to the DYDX token dropping by 4.7%, from $2.4 to $2.51. Its market capitalization also decreased by over $30 million.

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