On March 20, 2023, OKX cryptocurrency exchange informed its customers in Canada that it will no longer provide operations or allow new accounts to be established in the country, effective March 24, 2023, at 12:00 AM EST. The exchange cited new regulatory restrictions as the reason for its departure. OKX stated that its clients in Canada must close any open positions in futures, options, margins, and perpetuals by June 22, 2023. Additionally, accounts must be free of fiat money or tokens by the deadline.

Customers’ Funds Remain Unaffected during this Activity

The exchange assured customers that their funds would be kept securely in their accounts until they decided to withdraw them. They can transfer dollars to the bank account linked to their wallet or cryptocurrency to their self-custody wallet or cryptocurrency account on another exchange.

OKX said that it is only leaving the Canadian market temporarily and is working with the right people to find a solution. The exchange hopes to resume operations in the country in the future. On July 29, 2022, the cryptocurrency exchange Bittrex Global made a similar announcement in which it off-boarded its users from Canada, citing regulatory developments as the reason for its departure.

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In a notice published on February 22, 2023, the Canadian Securities Administrator (CSA) asked cryptocurrency exchanges to make more guarantees that could be enforced by the law while they waited to be registered with the regulatory body. Among other things, the new effort places limitations on the ability to buy or deposit value-referenced crypto assets through crypto contracts without first obtaining prior written authorization from the CSA.

Canadian Financial Authority Demands Regulations for Crypto Exchanges

To do business in Canada, cryptocurrency exchanges need to get themselves registered with the relevant regulatory agencies. In the course of an investigation carried out on June 22, 2022, by the Ontario Securities Commission, it was determined that ByBit and KuCoin were operating as non-compliant platforms in Canada. As a result, fines in the millions of dollars were levied against both of these businesses.

It would appear that the newly implemented limits have not had any effect on the stablecoin USD Coin. OKX has assured its clients that it will continue to work closely with the appropriate authorities and will keep them informed of any further developments.