Canadian Bitstamp users have until January 8, 2024 to withdraw their funds and deactivate their accounts. This measure follows the withdrawal of the Bitstamp exchange from the Canadian market due to regulatory restrictions.
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Bitstamp, next exchange to withdraw from Canada
A new barrier to accessing cryptocurrencies has arisen for users resident in Canada. The CEX (Centralised Exchange) for cryptocurrencies Bitstamp has announced that it will cease operations in Canada early next year. To this end, Bitstamp has invited Canadian users to withdraw their funds from the platform before January 8, 2024. In addition, Canadian users must deactivate their accounts, otherwise Bitstamp will do it itself!
Bitstamp will officially cease service to customers in Canada as of January 8, 2024. As a result, all accounts in Canada will be closed and customers will no longer have access to their accounts..Bobby Zagotta, Bitstamp’s American CEO and worldwide sales director.
The discontinuation of Bitstamp in Canada was a reluctant decision. Bobby Zagotta, Bitstamp’s American CEO said the decision had not been taken lightly. He hopes that the exchange will return to the Canadian market in the future. It seems that Bitstamp was one of the last CEX still active in Canada, what’s the future for crypto in this jurisdiction?
Canadian regulations accelerate the exodus of crypto exchanges
In its press release, Bitstamp does not say exactly why it is withdrawing from the Canadian market. However, current regulation of the cryptocurrency sector may well be the cause. Indeed, after the collapse of FTX, Canada has strengthened its regulation of the crypto sector. Crypto platforms have been banned from providing leveraged trading services and stablecoin transactions. In addition, the Canadian Securities Administrators (CSA) required exchanges to register within 30 days.
These rules are presented as aiming to protect Canadians from crypto scams. However, they have contributed to an unsustainable business climate for crypto exchanges, which have not hesitated to leave Canada one after the other. Long before Bitstamp some of its competitors had already fled Canada. This year, exchanges Binance, OKX, Bybit have ceased their activities to Canadian users due to regulatory pressure. Crypto.com has been forced to delist the USDT stablecoin.
While Canadians are interested in Bitcoin, their government is trying to prevent them from accessing it. It will be interesting to see whether government restrictions will halt the progression of crypto in Canada. Meanwhile, the alternative in the absence of an exchange remains a decentralized wallet, where the user is responsible for the security of the private key.
I dream of a world where every citizen has total control over themselves, including their finances. I believe that Bitcoin is one of the tools that will achieve this revolution. Since 2019, I am learning about this cryptocurrency and spreading the word around.