Bitstamp to Cease Operations in Canada by January 2024
Bitstamp, a cryptocurrency exchange, has announced that it will be ending its operations in Canada by January 8, 2024. This decision follows the footsteps of other major exchanges like Binance and Bybit, which have also recently exited the Canadian market.
Bitstamp Sets January Deadline for Withdrawals
The CEO of Bitstamp, Bobby Zagotta, expressed gratitude towards their Canadian clientele and emphasized that the decision was not taken lightly. He also hinted at the possibility of returning to the Canadian market in the future. However, all Canadian accounts will be closed for now and access will be terminated after the mentioned date. Customers have been given until January 8 to withdraw their funds, after which they are expected to deactivate their Bitstamp accounts.
Exchanges Leaving Canada Becomes a Trend
This trend of crypto exchanges exiting Canada is not new. Earlier this year, exchanges like OKX, Paxos, and dydx also left the Canadian market. Binance cited new guidelines related to stablecoins and investor limits as the primary reason for its departure. Bybit clarified its intentions and asked users to close their positions by the end of September.
CSA Sets Registration Deadline for Exchanges
The Canadian Securities Administrators (CSA) had previously set a deadline for crypto asset exchanges to register with them by late March. This was to ensure that they met specific pre-registration requirements. However, on October 6, the CSA revealed potential allowances for trading specific stablecoins under certain terms and conditions.
One of these conditions requires stablecoin issuers to maintain an “appropriate” asset reserve with a qualified custodian. It is important to note that meeting these interim conditions does not mean that the CSA endorses or approves the asset.
Hot Take: Bitstamp Follows Binance and Bybit in Exiting Canadian Market
Bitstamp’s decision to halt operations in Canada by January 2024 is part of a growing trend of crypto exchanges leaving the Canadian market. This move comes after other major exchanges like Binance and Bybit also exited Canada recently. The Canadian Securities Administrators (CSA) had set a registration deadline for crypto asset exchanges earlier this year, but potential allowances for trading specific stablecoins were revealed on October 6. As the crypto landscape continues to evolve, it remains to be seen how these regulatory changes will impact the industry in Canada.
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