Effective immediately, dYdX, the decentralized crypto exchange, will discontinue its services to Canadian traders. The decision to exit the Canadian market is in response to the country’s evolving regulatory framework, which prioritizes consumer protection and compliance. As a result, Canadian traders will no longer be able to access dYdX’s platform starting next week.
As per a recent blog post on the official website of dYdX, the platform has ceased accepting new users from Canada. However, existing Canadian customers can continue trading until April 14, 2023, to effectively manage and liquidate all their open positions on the exchange.
Effective immediately, dYDx has announced that all Canadian users on the platform will be transitioned to close-only mode at 17:00 UTC on April 14. This will enable them to withdraw their funds from the protocol at their convenience. The Deprecation Warning recognizes the unexpected and potentially disruptive nature of this decision.
The DeFi exchange has announced its departure from Canada, citing the country’s regulatory climate as the primary reason for its decision. The Canadian Securities Administrators recently released a notice outlining stricter rules and regulations that crypto exchanges must adhere to, including heightened oversight, custody requirements, and a margin/leverage trading prohibition. As a result, the DeFi exchange has made the difficult but necessary choice to withdraw from the Canadian market.
At dYdX, we remain steadfast in our unwavering dedication to transparency in all product decisions. Our mission is to democratize access to financial opportunities for all, and we are hopeful that the regulatory landscape in Canada will evolve to enable us to resume our services in the country. We will monitor the situation closely and inform our valued customers of any updates.
The DYDX governance token, which fuels the DeFi exchange’s layer-2 protocol, experienced a significant setback after the Canadian departure announcement. The token plummeted nearly 5% to $2.4 before rebounding to $2.51. As a result, its market capitalization decreased by over $30 million.
