Effective next week, crypto traders based in Canada will regrettably no longer have access to dYdX’s services. The decentralized crypto exchange has decided to withdraw its services from the country by the end of this month, in light of the changing regulatory environment.
About the dydx Announcement
In a recent blog post on the official website of dYdX, it has been announced that the platform will no longer be accepting new users from Canada. However, the existing customers from Canada will have ample time until April 14, 2023, to participate in trading activities on the exchange and manage all their open positions.
However, it is important to note that at 17:00 UTC on April 14, all current users from Canada on the platform will be moved to close-only mode. This will enable them to withdraw their funds from the protocol at their convenience.
Reason for this Move
The DeFi exchange has recently declared its withdrawal from Canada, attributing the regulatory climate as the main factor behind this move.
Earlier this year, the Canadian Securities Administrators had released a notice that specified more rigorous guidelines and regulations that must be followed by the crypto exchanges. These fresh measures encompass stricter supervision, custody regulations, and a prohibition on margin and leverage trading.
According to an official notice, dYdX is committed to maintaining transparency in product decisions and providing financial opportunities to everyone. They also conveyed their positive outlook on the future development of the regulatory landscape in Canada, which would enable them to resume operations in the country.
Effect on DYDX Token
The DYDX governance token, responsible for powering the DeFi exchange’s layer-2 protocol, experienced a significant setback due to reports of the Canadian exit. The token’s worth plummeted by almost 5%, reaching $2.4, before recovering to $2.51. Furthermore, the token’s market capitalization decreased by more than $30 million.