- OKX will close its Canadian operations in June 2023.
- An off-boarding message has been sent by the exchange to OKX users in Canada.
- Canadians cannot open new OKX account beginning on March 24, 2023.
The price of OKB, the native token of the OKX crypto exchange has dipped by almost 6% after the crypto exchange revealed that it will be ceasing operations in Canada in three months’ time.
The OKB token traded at $46.01 as of press time after a 5.89% drop over the last 24 hours. The token’s price has dropped sharply since Saturday, March 18, 2023. It was at $51.42 before falling to the current level.
OKX to close its Canadian operations
OKX has communicated today that the crypto-exchange will be closing down in Canada at June 22, 2023.
OKX sent an email to Canadian users. The email states that the exchange “will no longer provide services or allow users to open new accounts in Canada starting on Mar. 24, 2023, 12:00 AM EST.”
OKX mentioned new regulations in its decision to pull out of the country. Canadian customers that are currently in Canada must close all open positions in perpetual futures options and margins by June 22nd, 2023. Customers must also withdraw Fiat and token deposits before the same date.
According to the exchange,
“Your funds will remain safe in your account until you withdraw them. You will be able to withdraw dollars to your linked bank account and cryptocurrency to your self-custody wallet or your cryptocurrency account on another exchange.”
OKX claims that Canada’s decision to leave the market is temporary and that it will work with regulators to resolve the problem. OKX wrote saying: “We hope to see you again in the future. Stay tuned.”
OKX isn’t the only crypto exchange to leave Canada. Bittrex Global re-enabled Canadian users in July 2022 after receiving a similar advance notice, citing regulatory concerns.
Canadian crypto regulations
The Canadian Securities Administrators (CSA), published a notice on February 22, 2023 requiring cryptocurrency exchanges that they sign new legally-binding agreements while waiting to be registered with the regulator. The agreement prohibits “buying or depositing Value Referenced Crypto Assets (commonly referred to as stablecoins) through crypto contracts without the prior written consent of the CSA” among many other items.
Before accepting Canadian users, all cryptocurrency exchanges must register with Canadian regulators. KuCoin and Bybit were both fined last June for operating in the country but not complying with the requirement.
