Bitstamp to Withdraw from Canadian Market in 2024
European cryptocurrency exchange Bitstamp has announced that it will be discontinuing its services in Canada starting from January 2024. The decision comes as Canada implemented stricter regulations for crypto companies operating in the country. Bobby Zagotta, Bitstamp’s U.S. CEO, stated that the exchange did not take the decision lightly and expressed hope to serve Canada again in the future.
Industry Exodus as Canadian Regulators Set Registration Deadline
Bitstamp joins a growing list of crypto trading platforms leaving Canada, including Binance, Paxos, DyDx, Bybit, and OKX. The exodus is a result of the Canadian Securities Administrators (CSA) imposing a deadline for crypto businesses to register with local regulators. Currently, only 12 crypto companies have obtained authorization to serve Canadian users. Additionally, 11 firms have submitted pre-registration undertakings, including Coinbase Canada and Gemini.
Bitstamp Explores Partnerships with European Financial Institutions
As Bitstamp exits the Canadian market, it is actively negotiating partnerships with major European financial institutions. While the specific banks were not disclosed, Zagotta revealed that Bitstamp is in advanced discussions with three well-known European banks. In August 2023, Bitstamp collaborated with Galaxy Digital, Mike Novogratz’s crypto bank, to seek funding for expansion into Asian and UK markets.
Hot Take: Bitstamp’s Exit Highlights Regulatory Challenges
The departure of Bitstamp from the Canadian market underscores the challenges faced by crypto exchanges due to increasing regulatory requirements. Stricter rules imposed by authorities can lead to an exodus of platforms and limited options for users. However, this also presents an opportunity for authorized companies to establish themselves as trusted providers within the Canadian crypto industry.
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