Cryptocurrency exchange OKX plans to close its Canadian operations by mid-2023, according to an email sent to Canadian users.
According to the exchange, withdrawals are valid until June 22nd, requiring users to transfer cryptocurrencies and fiat to other cryptocurrency wallets or linked bank accounts. OKX said in an email:
“You can withdraw dollars to your linked bank account and cryptocurrency to your self-custody wallet or cryptocurrency account on another exchange.”
Registered in the Seychelles and headquartered in Malta, OKX currently ranks as the 8th largest crypto exchange by market capitalization according to data from Coinmarketcap.
regulatory issues
OKX said it moved because of Canada’s “new regulations.” The exchange did not specify which rules would lead to the decision or what stage the regulatory process is at.
However, it added in an email that the closure is temporary and that it is working with regulators to resolve issues arising from the new rules.
OKX did not respond to requests for further clarification from crypto slate at the time of writing.
new rule
Currently, all cryptocurrency exchanges are required to register with Canadian regulators before onboarding Canadian users and failure to do so will result in crypto exchanges being fined by Canadian regulators in 2022. Millions of dollars fined against Bybit and KuCoin
Most recently, the Canadian Securities Administration (CSA) issued a notice requiring all cryptocurrency exchanges awaiting registration to sign a legally binding “promise” to enhance investor protection. issued.
These promises include prohibiting users from purchasing and transferring stablecoins without prior regulatory consent. According to the CSA notice:
“If the CTP is unable or unwilling to provide enhanced pre-registration business, the CSA will offboard existing Canadian users and impose restrictions to prevent Canadian users from accessing its products or services. I hope that appropriate measures will be taken.”
As of January 18, all of the top 10 cryptocurrency exchanges by market capitalization fully allowed work in Canada.
On the other hand, only KuCoin and Poloniex Banned from domestic sales.
