Cryptocurrency exchange OKX has announced plans to shut down its operations in Canada by March 24th. The decision follows a stringent regulatory environment in the country, making it challenging for the exchange to continue its services. OKX has urged its customers to withdraw all their funds before the deadline. The closure is expected to impact the cryptocurrency trading landscape in Canada, and investors in the region will need to look for alternative platforms to trade.
OKX Crypto Exchange Ceases Services in Canada Amidst Regulatory Challenges
OKX, one of the top crypto exchanges in the blockchain industry, has announced that it will no longer allow opening new accounts and will cease its services in Canada by March 24, 2023. The decision has been taken due to severe regulatory hurdles in Canada that require crypto exchanges to adhere to strict regulations. OKX hopes to welcome Canadian users back soon and is in talks with the regulatory authority to resolve the issue.
According to the email sent to its community, OKX cited the Canadian Securities Authority’s (CSA) new regulations as the reason behind this step. OKX assured its users that their funds are safe and can be withdrawn by June 22, 2023. It also stated that users can withdraw their funds both in fiat and crypto assets.
Several firms have recently been affected by regulatory challenges in Canada, resulting in their insolvency. The CSA issued a notice on February 22, requiring crypto exchanges to sign new Pre-Registration Undertakings (PRU), which is now mandatory for crypto exchanges that want to secure regulatory approval in the country.
One of the biggest undertakings introduced in the note is that crypto trading platforms (CTPs) must first conduct written consent with CSA before buying or depositing Value Referenced Crypto Assets from crypto contracts, which mainly includes stablecoins, among other products.
CTPs are required to register with financial regulators before providing services in Canada, and CSA warned that crypto platforms that violate these rules must face legal action. KuCoin and ByBit are examples of crypto exchanges that have paid millions of dollars in fines after June 2022 for violating Canadian regulations.
In conclusion, regulatory challenges continue to be a significant hurdle for crypto exchanges in Canada. OKX is the latest victim, and its departure is expected to provide other crypto exchanges with insights into regulatory compliance. The Canadian government must work towards creating a regulatory environment that is conducive to growth of crypto industry while simultaneously protecting investors’ rights.