DYdX, a crypto derivatives exchange, has recently declared that the platform will limit the accounts associated with Canadian consumers in the coming 7 days. The platform is taking this action while quitting the market. The crypto exchange published a blog post on the 7th of April to explain this scenario.
DYdX to Terminate Its Services for Consumers Living in Canada
In that post, the company noted that it will begin with terminating the onboarding of the latest consumers living in Canada. On the 14th of this month, the platform will shift the entirety of the remaining Canadian consumers to a “close-only” status. This will permit the respective users to just extract their funds from the exchange.
The firm further mentioned in the blog post that it is determined to offer transparency related to product decisions as well as to democratize access to exclusive financial opportunities. As the company asserted, it expects that the regulatory environment within the Canadian jurisdiction will have some improvements in the future. As a result, it will be permitted to restart offering services within the country, it added.
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The move comes after the announcement of restrictions by the Canadian Securities Administrators for registration requirements dealing with the crypto exchanges. Those rules necessitated the companies to be banned from allowing the users in Canada to engage in the crypto contracts to sell as well as purchase any crypto derivative or security.
Such an extreme approach toward crypto can turn out to be problematic for the industry in the long run. Nevertheless, the optimism expressed by dYdX about the future regulatory scenario of the country points toward some positive outcomes. dYdX is not the only crypto entity that is facing such difficulties.
US SEC and CFTC Pose Troubles to Coinbase and Binance
The other crypto platforms like Coinbase and Binance are also going through hard times in the United States. The US Securities and Exchange Commission (SEC) is posing troubles to Coinbase while Binance is facing charges raised by the Commodities and Futures Trading Commission (CFTC). In September last year, several crypto and dYdX consumers condemned a promotion from the exchange.
The respective promotion offered a $25 deposit reward for the identification of a person with the use of a live webcam-based image. Later on, the exchange closed the project while referring to the overwhelming demand instead of a few pointed-out privacy concerns.