dYdX has announced that it will stop offering services to clients based in Canada.
The DeFi exchange has blamed Canada’s regulatory climate for its decision to exit the country’s market.
The decentralized exchange’s governance token lost over 5% of its value following the news.
DeFi exchange dYdX has announced its plans to exit the Canadian market later this month. The popular crypto derivatives exchange has already stopped the onboarding of new users located in Canada and will soon suspend trading for its users from the country.
dYdX blames Canada’s regulatory landscape for its departure
According to a Deprecation Warning posted on dYdX’s official website earlier today, the decentralized exchange revealed that Canada’s regulatory climate prompted its decision to exit the country. However, the DEX hinted that it may resume its services in Canada if the country’s regulatory landscape were to improve.
As for the logistics of the winding down of dYdX’s services in Canada, the DEX informed its users that they will be able to continue trading on the platform for one week. This time is to be used to settle all open trades and close positions, failing which they will be closed by the DEX. The platform has already stopped onboarding users based in Canada. All existing Canadian users will be moved to a close-only mode on 14 April 2023, which will allow users to withdraw their funds at any time.
“As always, dYdX is committed to providing transparency around product decisions and democratizing access to financial opportunity. We hope that the regulatory climate in Canada will change over time to allow us to resume services in the country.”
News of the DeFi exchange’s departure from the Canadian market sent the price of its governance token tanking. DYDX lost more than 5% of its value, sinking as low as $2.43. The token has since recovered and is currently trading at $2.45. DYDX’s market capitalization has gone down by more than $20 million over the past 24 hours.