Canada's strict cryptocurrency regulations have caused dYdX to halt operations in the country, following centralized exchanges.

Due to the severe impact on investors caused by the bankruptcy of multiple cryptocurrency institutions over the past year, the Canadian Securities Administrators (CSA) issued a notice on 2/22 this year, setting strict rules for cryptocurrency trading platforms. Not only have several centralized exchanges left recently, but today there are even reports of the decentralized exchange dYdX shutting down its operations.

Strict Standards by Canadian Securities Regulators Lead to Exodus of Several Exchanges

According to previous reports, the CSA's notice outlined the rules for cryptocurrency exchanges and required exchanges to comply by March 24, including:

• Exchanges must segregate custodial user assets

• Prohibition of providing margin, credit, or any form of leverage trading to Canadian users

• Prohibition of allowing users to trade or deposit value-referenced cryptocurrencies, stablecoins, and proprietary tokens without CSA approval

Following the issuance of this strict notice, several centralized exchanges such as OKX, Deribit, and Blockchain.com have chosen to temporarily halt their cryptocurrency services in Canada until they can resolve regulatory concerns and business development matters.

After the departure of several centralized exchanges, news has emerged today that decentralized exchanges are also choosing to leave the Canadian market.

Decentralized Derivatives Exchange dYdX Also Exiting Canada

According to the announcement from decentralized derivatives exchange dYdX, as of 1:00 AM today, dYdX will no longer accept new registrations from Canadian users, and existing users will only have one week to conduct normal trading activities. After one week, Canadian users will only be able to close positions and withdraw funds on dYdX.

Due to dYdX's focus on derivatives as its primary offering, the conditions prohibiting margin, credit, or leverage trading in Canada are unfavorable for the platform and may not be immediately met.

However, dYdX's departure may be temporary, as officials stated that if the regulatory environment in Canada changes over time, dYdX may have the opportunity to resume services in the country.