Bitstamp has confirmed its decision to discontinue its
services in Canada, effective January 8, 2024. This move comes as the latest in
a series of exits from the Canadian market by cryptocurrency companies,
following Binance and Bybit earlier this year.
Bitstamp’s CEO, Bobby Zagotta, expressed the company’s
appreciation for its Canadian customers, stating: “This is not a decision
we took lightly, and we thank our Canadian customers for their loyalty over the
years. We hope to be able to serve Canada again at some point in the
future.”
The official announcement was made after Bitstamp initially
informed its Canadian customers about the coming exit back in March. Zagotta
confirmed that as of January 8, 2024, all Canadian accounts would be closed.
Customers would no longer have access to their Bitstamp
accounts. However, until that date, customers will be able to withdraw their
funds. After that they must deactivate
their Bitstamp accounts.
Wave
of Exits: Other Major Exchanges Leaving the Canadian Market
Bitstamp‘s
decision to exit the Canadian market aligns with a broader trend in the cryptocurrency
industry. Earlier this year, other major exchanges also departed from the
Canadian market including Binance
and Bybit. Companies
like OKX, Paxos, and dydx had previously left, citing regulatory changes and
market conditions.
Binance left the Canadian market earlier this year. Binance attributed
its departure to new guidance related to stablecoins and investor limits,
making the market untenable. Bybit, on the other hand, informed users to close
out their positions by the end of September.
These exits unfolded as the Canadian Securities
Administrators (CSA) imposed a deadline for crypto asset exchanges to register
and meet pre-registration requirements by late March. However, on October 6,
the CSA made an announcement indicating that it might permit the trading of
specific stablecoins.
It may subject to certain terms and conditions.
Under this new framework, stablecoin issuers will be
required to maintain an “appropriate” asset reserve with a qualified
custodian. It’s important to note that this regulatory change does not signal a
shift in the CSA’s overall stance on cryptocurrencies.
“The fact that an asset satisfies these interim terms
and conditions should not be viewed as an endorsement or approval of the asset,
nor give any indication that the asset is risk-free,” the CSA cautioned.
This statement underscores the continued vigilance of regulators…
