Decentralized cryptocurrency derivatives exchange dYdX has announced the shutdown of its services for Canadian users over the next seven days.
In a blog post on April 7, the company stated that it will be “winding down services” in Canada, beginning with the halting of new user onboarding in the country. On April 14, the exchange will move all existing Canadian users to “close-only mode,” allowing them only to withdraw funds.
The exchange cited the current regulatory environment in Canada as the reason behind the move. Canada has adopted a more restrictive stance toward cryptocurrency exchanges in recent months, a process that accelerated following the collapse of FTX. Regulators are expected to release updated guidance in the near future.
Despite the shutdown, dYdX expressed its commitment to providing transparency around product decisions and democratizing access to financial opportunity. The exchange also expressed hope that the regulatory climate in Canada will change over time, allowing it to resume services in the country.
The move to exit the Canadian market is not unique to dYdX. Several other cryptocurrency exchanges have also faced challenges and regulatory pressure in Canada. However, the decision by dYdX to wind down its services in Canada underscores the challenges faced by cryptocurrency exchanges operating in a rapidly evolving regulatory environment.