On Mar. 20, cryptocurrency exchange OKX informed Canadian users via email the firm “will no longer provide services or allow users to open new accounts in Canada starting on Mar. 24, 2023, 12:00 AM EST,” citing “new regulations.” According to OKX, existing Canadian customers must close open positions in options, margins, perpetual, and futures by June 22, 2023. Fiat or tokens must also be withdrawn by the said date.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 cryptocurrency to your self-custody wallet or your cryptocurrency account on another exchange. “
OKX says its withdrawal from Canada is “temporary,” and the exchange is working with regulators to solve this issue. “We hope to see you again in the future. Stay tuned,” wrote OKX staff. Previously, cryptocurrency exchange Bittrex Global off-boarded Canadian users on July 29, 2022, after giving advance notice, which, too, cited regulatory developments as reasons for leaving the country.
On Feb. 22, the Canadian Securities Administrators (CSA) published a notice requiring crypto exchanges to sign new, legally-binding undertakings while they await registration with the regulatory. Among many items, the new undertaking prohibits “buying or depositing Value Referenced Crypto Assets (commonly referred to as stablecoins) through crypto contracts without the prior written consent of the CSA.” Although it appears stablecoin USD Coin (USDC) has not been affected by the ruling.
Currently, all cryptocurrency exchanges must register with Canadian regulators before onboarding users in the country. On June 22, 2022, cryptocurrency exchanges ByBit and KuCoin were issued millions of dollars in fines after the Ontario Securities Comission determined that determined both were operating as “non-compliant platforms” in the country.