dYdX, a decentralized finance (DeFi) crypto exchange, has announced that it will stop offering its services to users based in Canada and exit the country later this month. Here are some key points:
- dYdX has already stopped onboarding new Canadian users
- Existing Canadian customers have until April 14, 2023, to manage and liquidate all open positions
- All existing Canadian users will be moved to close-only mode on April 14, allowing them to withdraw their funds at any time
Regulatory Climate in Canada Cited as Reason for Exit
According to a blog post on dYdX’s official website, the DeFi exchange cited the regulatory climate in Canada as the reason for its decision to exit the country. Earlier this year, the Canadian Securities Administrators published a notice detailing enhanced rules and regulations that crypto exchanges were required to comply with. This included increased oversight, custody rules, and a ban on margin/leverage, among other things.
DYDX Token Takes a Hit
The announcement prompted a drop in the DYDX token, the governance token of the layer-2 protocol that powers the namesake DeFi exchange. The token sank almost 5% to $2.4 before recovering to $2.51, and its market capitalization shrank by more than $30 million.
In conclusion, the DeFi exchange dYdX has decided to suspend services for Canadian users and exit the country later this month due to the regulatory climate in Canada. Existing Canadian users will have until April 14 to manage and liquidate all open positions before being moved to close-only mode. The decision has had an impact on the DYDX token, which experienced a drop in value.