OKX will cease operation in Canada in June 2023.
The exchange has already sent an off-boarding message sent to Canadian OKX users.
Canadians will not be able to open new OKX accounts starting on March 24, 2023.
The price of OKB, the native token of the OKX crypto exchange has dipped by almost 6% after the crypto exchange revealed that it will be ceasing operations in Canada in three months’ time.
At press time, the OKB token was trading at $46.01 after a 5.89% drop in the past 24 hours. The token has been on a sharp decline since Saturday, March 18, 2023, dropping from a high of $51.42 to its current price.
OKX to cease operations in Canada
A communication made today by OKX has indicated that the crypto exchange will cease operation in Canada on June 22, 2023.
OKX made the communication via emails to their Canadian users. The email states that the exchange “will no longer provide services or allow users to open new accounts in Canada starting on Mar. 24, 2023, 12:00 AM EST.”
OKX cited new regulations for the decision to withdraw from the country. Existing Canadian customers must close open positions in perpetual, futures options, and margins by June 22, 2023. The customers must also withdraw their Fiat and token deposits by the same date.
The exchange stated:
“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.”
OKX however says that the move to exit the Canadian market is temporary as it works with regulators to solve the issue. OKX wrote saying: “We hope to see you again in the future. Stay tuned.”
OKX is not the first crypto exchange to exit Canada. Bittrex Global off-boarded Canadian users on July 29, 2022, after a similar advance notice citing regulatory issues.
Canadian crypto regulations
On February 22, 2023, the Canadian Securities Administrators (CSA) published a notice requiring cryptocurrency exchanges to sign new, legally-binding agreements while they await registration with the regulatory. The agreement prohibits “buying or depositing Value Referenced Crypto Assets (commonly referred to as stablecoins) through crypto contracts without the prior written consent of the CSA” among many other items.
All cryptocurrency exchanges must register with Canadian regulators before onboarding Canadian users. KuCoin and Bybit were fined in June last year for allegedly operating in the country without cooperating with the requirement.
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