DeFi Exchange dYdX Set To Suspend Services For Canadian Users
- The DeFi crypto exchange has already stopped onboarding new Canadian users.
- The news prompted the DYDX to drop as much as 4.7%.
Crypto traders in Canada will not be able to trade on dYdX starting next week. The decentralized crypto exchange has announced that it will stop offering its services to Canadian users and exit the country later this month. The move comes amid a shift in Canada’s regulatory landscape toward better compliance and consumer protection.
According to a blog post on dYdX’s official website, the platform has already stopped onboarding new users from Canada. The existing Canadian customers will have until April 14, 2023, to engage in trading activities on the exchange in order to manage and liquidate all open positions.
At 17:00 UTC on April 14, all existing Canadian users on the platform will be moved to close-only mode, which will allow them to withdraw their funds from the protocol at any time. The Deprecation Warning acknowledged the sudden and disruptive nature of dYDx’s decision.
The DeFi exchange cited the regulatory climate in Canada for its decision to exit the country. Earlier this year, the Canadian Securities Administrators published a notice detailing enhanced rules and regulations that crypto exchanges were required to comply with. This included increased oversight, custody rules, and a ban on margin/leverage, among other things.
“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 notice read.
DYDX, the governance token of the layer-2 protocol that powers the namesake DeFi exchange, took a considerable hit following the news of the Canadian exit. The token sank almost 5% to $2.4 before recovering to $2.51. Its market capitalization shrank by more than $30 million.