Crypto exchange OKX set to temporarily pull out of Canada citing “new government regulations“
In a letter to customers, the exchange said existing Canadian users must close open options, margins, perpetual and futures positions, as well as withdraw fiat or tokens by 22 June.
Additionally, OKX says it will no longer provide services or allow Canadian customers to open new accounts from 24 March.
Despite the news, OKX, which is the second biggest crypto exchange by trading volume, says the move is “temporary and we are working with regulators to solve this issue”.
“Your funds will remain safe in your account until you withdraw them. You will be able to withdraw dollars to your linked bank account and cryptocurrency to your self-custody wallet or your cryptocurrency account on another exchange,” the e-mail says.
Last month, the Canadian Securities Administrators (CSA), which regulates Canada’s capital markets, laid out the investor protections it expects from cryptocurrency trading platforms operating in the country.
The CSA says crypto exchanges must have enhanced protections for the custody and segregation of crypto assets for Canadian clients and are prohibited from offering margin,credit or other forms of leverage All cryptocurrency exchanges must also register with Canadian regulators before onboarding users in the country.
Crypto Exchange Okx
In summary cryptocurrency exchange OKX has announced that it will be temporarily withdrawing from Canada citing “new regulations,” forcing existing Canadian customers to close open options, margins, perpetual and futures positions by June 22, 2023.
The Canadian Securities Administrators recently published a notice requiring crypto exchanges to sign new, legally binding undertakings while they await registration with the regulatory, including a prohibition on buying or depositing Value Referenced Crypto Assets through crypto contracts without prior written consent from the CSA.