Bitstamp to exit Canada in January

Bybit said customers will have to ‘deactivate’ accounts after Jan. 8

October 10, 2023 02:44 pm

GagliardiPhotography/Shuttestock modified by Blockworks

Bitstamp is discontinuing services in Canada starting January 2024.

The crypto company did not give a clear reason for the exit, with CEO Bobby Zagotta saying, “This is not a decision we took lightly, and we thank our Canadian customers for their loyalty over the years. We hope to be able to serve Canada again at some point in the future.”

“After initially informing our valued customers in March, Bitstamp will officially discontinue its services to customers in Canada starting Jan. 8, 2024. As a result, all Canada accounts will be closed and customers will no longer have access to their accounts,” Zagotta added.

Customers will be able to withdraw their funds until Jan. 8, though after that “customers must deactivate their Bitstamp accounts.”

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Bitstamp is the latest exchange to exit the Canadian market, following Binance and Bybit. Other companies, such as OKX, Paxos and dydx also left earlier this year.

“Unfortunately, new guidance related to stablecoins and investor limits provided to crypto exchanges makes the Canada market no longer tenable for Binance at this time,” Binance said back in May.

Bybit, which announced its decision to exit the market in late May, told users to close out positions by the end of September.

The exits earlier this year came as the Canadian Securities Administrators gave crypto asset exchanges a deadline of late March to register with them and meet “pre registration requirements.”

However, on Oct. 6, the CSA announced that it may allow the trading of specific stablecoins subject to terms and conditions.

The CSA will require stablecoin issuers to hold an “appropriate” asset reserve with a qualified custodian.

The change does not mean that the CSA is changing its stance on crypto.

“The fact that an asset satisfies these interim terms and conditions should not be viewed as an endorsement or approval of the asset, nor give any indication that the asset is risk-free,” the CSA warned.

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