Regulatory Restrictions Force dYdX to Wind Down in Canada

Cryptocurrency derivatives exchange dYdX has announced that it will be winding down its services in Canada over the next seven days, citing regulatory restrictions as the reason. 

The exchange will halt the onboarding of new users from Canada immediately, and on April 14, existing Canadian users will be moved to "close-only mode," allowing them to only withdraw funds.

dYdX stated in a recent blog post that it is committed to providing transparency and democratizing access to financial opportunities. However, the exchange expressed hope that the regulatory climate in Canada will change in the future, allowing it to resume services in the country.

This decision comes after the Canadian Securities Administrators recently announced additional restrictions on registration requirements for crypto exchanges in the country. These rules prohibit platforms from allowing Canadian clients to enter into crypto contracts to buy or sell any crypto asset that is considered a security or derivative.

This is not the first time dYdX has faced controversy. In September 2022, the exchange faced criticism for a promotion offering a $25 deposit bonus for confirming someone's identity using a live webcam image. The program was later ended due to "overwhelming demand," despite privacy concerns raised by users and the crypto community.

dYdX's exit from the Canadian market is another example of how regulatory changes can impact the cryptocurrency industry. It remains to be seen how the regulatory landscape in Canada will evolve and whether dYdX will be able to resume its services in the country in the future.

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