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dYdX token dips after exchange announce Canadian market exit

By:
on Apr 8, 2023
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  • dYdX exchange has announced plans to exit the Canadian market.
  • The exchange has cited regulatory climate as the main reason for the exit.
  • The exchange will be restricting Canadian user accounts over the next seven days

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The DYDX token took a hit after the decentralized exchange dYdX announced that it is winding down its services for Canadian users. The token had dropped to $2.44 before slightly recovering to trade at $2.50 at press time.

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The exchange announced that it will be restricting Canadian user accounts over the next seven days as it exits the market. It, however, said that they hope that the regulatory climate would change over time to allow the crypto exchange to resume its services in the country

dYdX Canadian market exit

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The exchange said that it is starting with halting the onboarding of new clients from Canada effective immediately. It will then move all existing Canadian users to close-only mode to allow them to withdraw their funds.

The exchange said:

“DYdX is committed to providing transparency around product decisions and democratizing access to financial opportunity,” said the exchange. “We hope that the regulatory climate in Canada will change over time to allow us to resume services in the country.”

The move follows an earlier announcement by the Canadian Securities Administrators for cryptocurrency exchanges to register before operating in the country. The rules require the crypto exchanges to be “prohibited from permitting Canadian clients to enter into crypto contracts to buy and sell any crypto asset that is itself a security and/or a derivative.”

dYdX in September last year received criticism from a fraction of the crypto community for a promotion where it was offering a $25 deposit bonus for confirming identity using a live webcam image although the exchange later terminated the program.

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