The native token of decentralized exchange (DEX) dYdX, DYDX, experienced a sharp decline in price after the announcement that the exchange will be gradually phasing out its services for Canadian users. At its lowest point, the token was trading at $2.44 before experiencing a slight recovery to reach $2.50 at the time of writing.
As per the announcement, the DEX will begin limiting access to its platform for Canadian users and suspending onboarding of new users from the country. Additionally, by April 14, all Canadian users will be transitioned into “close-only mode,” enabling them to withdraw their funds only.
Despite the restrictions, the exchange expressed optimism that the regulatory landscape would eventually become more favorable, allowing for a resumption of its services in Canada.
dYdX Canadian market exit
The exchange said that it is starting with halting the onboarding of new clients from Canada effective immediately. It will then move all existing Canadian users to close-only mode to allow them to withdraw their funds.
The exchange said:
“DYdX is committed to providing transparency around product decisions and democratizing access to financial opportunity,” said the exchange. “We hope that the regulatory climate in Canada will change over time to allow us to resume services in the country.”
The move follows an earlier announcement by the Canadian Securities Administrators for cryptocurrency exchanges to register before operating in the country. The rules require the crypto exchanges to be “prohibited from permitting Canadian clients to enter into crypto contracts to buy and sell any crypto asset that is itself a security and/or a derivative.”
dYdX in September last year received criticism from a fraction of the crypto community for a promotion where it was offering a $25 deposit bonus for confirming identity using a live webcam image although the exchange later terminated the program.
