Major exchanges are leaving one after another! Bitstamp will exit the Canadian market next year.

The Block reported that Bitstamp, a veteran cryptocurrency exchange operating for over 12 years, announced that it will cease its services to Canadian users in January next year. This move makes Bitstamp the latest major exchange to exit the Canadian market following Binance, Bybit, and OKX.

Bitstamp Exiting Canadian Market

Bitstamp announced to The Block that the company is planning to exit the Canadian market.

The content indicates that after notifying its users since March of this year, Bitstamp will officially cease services to Canadian users on January 8, 2024. All Canadian accounts will be deactivated, and users must withdraw their funds before that date.

Bobby Zagotta, the CEO of Bitstamp USA and Global Head of Business, revealed:

This is not a decision we made lightly, we appreciate the loyalty of our Canadian customers over the years and hope to have the opportunity to serve Canada again in the future.

Prior to this, in August of this year, Bitstamp was pressured by the U.S. Securities and Exchange Commission (SEC) to delist certain competing coins mentioned or accused of being securities due to the U.S. regulatory environment and industry developments.

Furthermore, as early as June of this year, it had initiated a fundraising process to raise funds for global expansion. It is said that Bitstamp will launch derivative trading in Europe next year and expand its services in the UK, while also expanding its business in the Asian market.

Tightening Regulation by Canadian Authorities

Earlier this year, the Canadian Securities Administrators (CSA) gave cryptocurrency exchanges a deadline by the end of March to register and meet the requirements.

Following this news, several major cryptocurrency companies, including Binance, Bybit, OKX, Deribit, Paxos, and dydx, have left the Canadian market within a year.

Recalling CSA's registration regulations: Canada tightens crypto regulation, major exchanges leave, leaving Coinbase and Crypto.com

It is worth noting that the exchange Coinbase expressed support for the country's regulatory actions, stating a preference for Canada's friendly approach to regulation through engagement.

However, its initially strict regulatory stance seems to have shifted recently. Just last week, CSA announced conditional approval for stablecoin trading, as long as the service issuer and exchange comply with terms related to asset reserves, governance, and operations, and submit an application by December of this year for approval.

Nevertheless, CSA also emphasized:

Even if the assets meet these standards, it should not be considered an absolute endorsement of the asset, nor does it indicate that the asset is without risk.