The crypto derivatives exchange dYdX has said it would limit Canadian user accounts over the next week to get out of the market.
In a blog post from April 7, dYdX said it would stop offering services in Canada, starting with preventing new users from signing up. The exchange will transfer all existing Canadian users to “close-only” mode on April 14, enabling them to withdraw funds only.
DYdX is committed to providing transparency regarding product decisions and democratising access to financial opportunities. It is based on the idea that Canada’s rules will change over time so the platform can start offering its services there again.
The move came after the Canadian Securities Administrators said that crypto exchanges in the country would have to go through more registration steps. According to the rules, platforms couldn’t let Canadian clients buy and sell crypto assets as securities or derivatives through crypto contracts.
In September 2022, many dYdX users and individuals in the crypto sphere criticised a promotion by the decentralised exchange that offered a $25 deposit incentive in exchange for using a live webcam image to verify an individual’s identity.
Later, the exchange stopped the programme, saying that overwhelming demand was the reason instead of privacy concerns.