OKX shuttering Canadian operations by mid 2023

Cryptocurrency trade OKX intends to shutter operations in Canada by mid-2023, in line with an electronic mail despatched to customers within the nation.

The trade mentioned withdrawals will stay open till June 22 and customers should switch their crypto and fiat to different crypto wallets or linked banked accounts. OKX mentioned within the electronic mail:

” It is possible for you to to withdraw {dollars} to your linked checking account and cryptocurrency to your self-custody pockets or your cryptocurrency account on one other trade.”

OKX is registered in Seychelles and headquartered in Malta and at the moment ranks because the eighth largest crypto trade by market cap, in line with Coinmarketcap information.

Regulatory points

OKX mentioned it made a transfer as a result of “new rules” in Canada. The trade didn’t specify which guidelines result in the choice or what stage the regulatory course of is at.

Nevertheless, it added within the electronic mail that closure is momentary and it’s working with regulators to resolve the problems stemming from the brand new guidelines.

OKX didn’t reply to requests for additional clarification from CryptoSlate on the time of writing.

New guidelines

All crypto exchanges are at the moment required to register with Canadian regulators earlier than onboarding customers within the nation and failure to take action has led to hundreds of thousands in fines for crypto exchanges — specifically Bybit and KuCoin, which have been fined by Canadian regulators in 2022.

Most not too long ago, the Canadian Securities Directors (CSA) issued a discover requiring all crypto exchanges awaiting registration to signal legally binding “undertakings” to boost investor safety.

These undertakings embody a prohibition on permitting customers to buy and switch stablecoins with out prior regulatory consent. Based on the CSA discover:

“If a CTP is unable or unwilling to offer an enhanced pre-registration enterprise, the CSA expects it’s going to take applicable motion to off-board present Canadian customers and impose restrictions to stop Canadian customers from accessing its services or products.”

As of Jan. 18, not one of the high 10 cryptocurrency exchanges by marketcap are totally licensed to function in Canada.

In the meantime, solely KuCoin and Poloniex are banned from working within the nation.