Crypto exchange OKX set to pull out of Canada citing “new regulations”
Cryptocurrency and derivatives exchange OKX is set to pull out of Canada following the introduction of new crypto regulations in the country.
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.