OKX To Exit Canadian Market By June 2023

Key Points:

• OKX exit Canadian customers have until June 22, 2023, to close open positions in options, margins, perpetual, and futures.
• All cryptocurrency exchanges are required to register with Canadian regulators before onboarding users in the country. In June 2022, ByBit and KuCoin were issued millions of dollars in fines by the Ontario Securities Commission for operating as “non-compliant platforms” in the country.

OKX has informed Canadian users via email that it will no longer provide services or allow new accounts in Canada starting on March 24, 2023. The firm cited “new regulations” as the reason for its decision. Existing Canadian customers have until June 22, 2023, to close open positions in options, margins, perpetual, and futures. Fiat or tokens must also be withdrawn by the same date.

OKX has assured its Canadian customers that their funds will remain safe in their accounts until they withdraw them. They can withdraw dollars to their linked bank account and cryptocurrency to their self-custody wallet or their cryptocurrency account on another exchange. The exchange has also stated that its withdrawal from Canada is temporary, and it is working with regulators to resolve the issue.

This is not the first time a cryptocurrency exchange has off-boarded Canadian users due to regulatory developments. Bittrex Global also did so on July 29, 2022, after giving advance notice.

The Canadian Securities Administrators (CSA) published a notice on February 22, requiring crypto exchanges to sign new, legally-binding undertakings while they await registration with the regulatory body. The new undertaking prohibits “buying or depositing Value Referenced Crypto Assets (commonly referred to as stablecoins) through crypto contracts without the prior written consent of the CSA.” However, stablecoin USD Coin (USDC) has not been affected by the ruling.

All cryptocurrency exchanges are required to register with Canadian regulators before onboarding users in the country. In June 2022, ByBit and KuCoin were issued millions of dollars in fines by the Ontario Securities Commission for operating as “non-compliant platforms” in the country.

OKX’s withdrawal from Canada is a reminder of the importance of complying with regulations in the cryptocurrency industry. It remains to be seen if the exchange will be able to resolve the issues it faces with Canadian regulators and return to the country in the future.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your research before investing.

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