dYdX, a well-known decentralized exchange, has recently announced that it will be imposing limitations on its platform for Canadian users.
The announcement stated that users from Canada will have a week to exit the market as the exchange will be discontinuing various staking programs and liquidity pools.
Although decentralized exchanges are typically non-custodial, meaning that users can make transactions from their own wallets, certain activities such as staking programs may result in funds being blocked.
Therefore, dYdX has provided Canadian users with ample time to manage and close their positions on the platform before discontinuing such activities.
The reason behind this decision is the order of the local regulator, which requires cryptocurrency exchanges to be registered in the country.
The new requirements specifically prohibit unregistered cryptocurrency platforms from allowing Canadian clients to engage in contracts or transactions involving the buying or selling of cryptocurrencies, whether they are securities or derivatives.
It is important to note that the dYdX platform had previously restricted operations on the Solana blockchain in November of last year.
Overall, dYdX’s decision to limit access for Canadian users reflects the increasing regulatory scrutiny surrounding cryptocurrency exchanges.
As the industry continues to evolve, it will be interesting to see how exchanges adapt to meet these changing regulations while continuing to provide valuable services to users around the world.