• dYdX has announced that its decentralized derivatives exchange will no longer be accessible to users in Canada on April 14, 2023.
• Canadian regulations are too restrictive and the platform cited a highly unfavorable regulatory environment as the reason for shutting down operations.
• Existing Canadian customers will be able to continue to execute trades on the platform until April 7th, 17:00 UTC.
Decentralized Exchange No Longer Accessible to Canadians
dYdX has announced that its decentralized derivatives exchange would no longer be accessible to users in Canada. Trading support for customers will end on the 14th of April, 2023. On April 7th at 17:00 UTC, dYdX will no longer allow new users located in Canada to onboard to the exchange. As part of the wind down process, existing Canadian users will be able to continue trading until one week from now.
Regulatory Environment Cited as Reason for Closure
The reason behind the decision is attributed to a highly unfavorable regulatory environment in Canada which has adopted a highly restrictive approach towards cryptocurrency exchanges and operations based in Canada. Canadian regulators are expected to release updated regulatory guidance in the near future, however it seems unlikely that this would result in an immediate reversal of this decision by dYdX.
Existing Customers Moved To Close-Only Mode
On the 14th of April at 17:00 UTC, dYdX will move all existing users in Canada to close-only mode, and users will maintain the ability to withdraw funds from the protocol at any time. This means that all open positions must be managed and closed before then or they risk not being able to access them after this date; however, withdrawing funds from these accounts is still possible even after this point is reached.
Promotion Criticised By Regulators
Canadian regulators had recently announced further restrictions on cryptocurrency exchanges operating in Canada including registration requirements for these exchanges which stated that Canadian clients could not enter into crypto contracts involving any crypto asset qualifying as a security or derivative – such as those offered by dYdX – without proper authorization from regulatory bodies first. Additionally, there was criticism leveled at dYdX due to a promotion offering bonuses for confirming user identity via webcam which ran afoul of certain privacy regulations set out by local authorities.
In conclusion, it appears likely that due primarily due unfavorable regulations and restrictions set out by local authorities enforced across most cryptocurrencies services operating within its borders; Canadians looking use derivatives exchanges like dYdX may find themselves more limited than other global citizens when it comes accessing financial tools offered by platforms such as this one .