OKX, a popular cryptocurrency exchange, has recently made an announcement regarding its plans to halt operations in Canada by June 2023.
The decision was made to avoid potential issues with local regulators. In an email sent out to its users, OKX management revealed that the marketplace will no longer be available for Canadian traders starting March 24.
Additionally, new users from the country will not be able to create accounts. OKX has advised its Canadian users to close all margin, perpetual, and futures positions by June 22, 2023, while also withdrawing any deposits in fiat currencies.
OKX has assured its users that their funds will be safe in their accounts until they withdraw them. Withdrawals can be made in either dollars to a linked bank account or digital assets to a cryptocurrency wallet or another exchange.
Although the departure of the platform from Canada is temporary, the OKX team has promised to continue engaging with regulators to resolve any issues related to operations in the country.
In February, the Canadian Securities Administrators Association (CSA) tightened its requirements for cryptocurrency exchanges to protect investors. As per the new rules, exchanges are prohibited from trading algorithmic stablecoins or other stablecoins that are not approved by the agency.
These regulatory hurdles have made things difficult for cryptocurrency exchanges operating in Canada, with the Ontario Securities Commission already fining marketplaces Bybit and KuCoin for violating securities laws in June of last year.