Decentralized Exchange dYdX to End Operations in Canada
- Decentralized exchange dYdX announced that it will be winding down its operations in Canada due to regulatory issues.
- The DEX said that users in Canada will not be able to create accounts starting April 7, 17:00 UTC, but existing users will have time to close positions.
- Existing users of the dYdX crypto trading platform will have their accounts suspended on April 14, 17:00 UTC.
- dYdX will move all existing users in Canada to “close-only mode,” but they will have the ability to withdraw funds from the protocol at any time.
2022 was a memorable year for the decentralized finance (DeFi) industry as the leading projects were hacked for their funds and decided to end operations after failing to win users’ trust. However, popular decentralized crypto exchange (DEX) dYdX continues attempts to make a recovery following the hack of its NPM account in September 2022. It is important to mention here that the DEX will be winding down its operations in Canada, and it seems that the project’s troubles are far from over.
In 2021, dYdX enjoyed great success and even went on to challenge Uniswap, which had been the leading decentralized exchange for many years. However, the project was unable to become very popular, and following the decline in trading volume on the platform and the NPM account hack in 2022, a comeback was delayed.
As per a blog post on April 7, dYdX confirmed that it is winding down user access from Canada. The decentralized crypto trading platform confirmed that users in Canada will not be able to create accounts starting April 7, 17:00 UTC. However, the existing users in the region will be given enough time to close and manage their positions opened on the crypto exchange.
“We realize that this restriction may be disruptive to certain users and regret any inconvenience. 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, we want to provide existing Canadian users ample time to manage and close their positions on dYdX,” said the decentralized crypto exchange.
dYdX confirmed that the existing users will be able to continue to execute trades on the crypto trading platform for one week after which their accounts will be closed. On April 14, at 17:00 UTC, the accounts of all the existing users will be closed.
In the blog post, the decentralized crypto exchange confirmed that “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.”
The DEX cited the regulatory climate in Canada as the reason for winding down its operations in the region. As reported earlier by Bitnation, the Prime Minister of the country, Justin Trudeau, slammed opposition leader Pierre Pollievere’s support for cryptocurrencies, stating that “responsible leaders” shouldn’t encourage people to “invest their life savings in volatile cryptocurrencies.”
“As always, dYdX is committed to providing transparency around product decisions and democratizing access to financial opportunity. We hope that the regulatory climate in Canada will change over time to allow us to resume services in the country,” said the decentralized crypto trading platform.
Recently, the Canadian Securities Administrators (CSA) tightened registration requirements for crypto exchanges for the second time, following the collapse of multiple crypto companies seen in 2022. Moreover, it also prohibited crypto firms from providing leveraged trading services. CSA stated that every crypto platform seeking registration in the region will need to sign an “undertaking” and segregate client and business funds.
A crypto journalist with over 3 years of experience in DeFi, NFT, metaverse, etc. Parth has worked with major media outlets in the crypto and finance world and has gained experience and expertise in crypto culture after surviving bear and bull markets over the years.
