The crypto market has been going through a wave of regulatory modifications lately, inflicting many crypto corporations to reassess their operations and even exit sure international locations altogether. The most recent instance of this development is the announcement by crypto alternate OKX that will probably be ceasing operations in Canada by June 22, 2023.
OKX Turns into the Newest Sufferer of Intense Laws
In a surprising flip of occasions, the favored cryptocurrency alternate OKX introduced that it might be exiting the Canadian market by June 2023, leaving hundreds of customers scrambling for alternate options.
OKX despatched an e mail to its Canadian customers on March twentieth, informing them that as of March twenty fourth, 2023, at 12:00 AM EST, they may now not be capable to open new accounts or entry companies because of new rules. Present Canadian customers are required to shut all positions in choices, margins, perpetual, and futures by June twenty second, 2023. Moreover, fiat or tokens have to be withdrawn by the identical date. The agency stated,
“Your funds will stay secure in your account till you withdraw them. It is possible for you to to withdraw {dollars} to your linked checking account and cryptocurrency to your self-custody pockets or your cryptocurrency account on one other alternate.”
The OKX alternate acknowledged that its departure from Canada is simply momentary, and it’s collaborating with regulators to resolve the matter. The OKX workers expressed the need to welcome Canadian customers again sooner or later and suggested them to remain tuned for updates. Equally, Bittrex World, one other cryptocurrency alternate, had beforehand off-boarded Canadian customers on July 29, 2022, citing regulatory developments as the rationale for leaving the nation. Nonetheless, Bittrex World had supplied advance discover earlier than taking this step.
Canadian Crypto Laws Are Obstacles to Crypto’s Progress
The Canadian Securities Directors (CSA) issued a discover on February twenty second, mandating cryptocurrency exchanges to signal new legally binding undertakings whereas ready for registration with the regulatory physique. The brand new enterprise contains a number of provisions, similar to a prohibition on buying or depositing Worth Referenced Crypto Property (also referred to as stablecoins) by means of crypto contracts with out the prior written approval of the CSA. Nonetheless, plainly the stablecoin USD Coin (USDC) has not been impacted by this ruling.
At current, Canadian regulators require all cryptocurrency exchanges to register earlier than permitting customers within the nation. Nonetheless, on June 22, 2022, ByBit and KuCoin, two cryptocurrency exchanges, acquired substantial fines after the Ontario Securities Fee discovered that each have been functioning as “non-compliant platforms” within the nation.