Bitstamp to exit Canada in January

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.”

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.

Get the news in your inbox. Explore Blockworks newsletters:

Blockworks Daily: The newsletter that helps thousands of investors understand crypto and the markets, by Byron Gilliam.
Empire: Start your morning with the top news and analysis to inform your day in crypto.
Forward Guidance: Reporting and analysis on the growing intersection of crypto and macroeconomics, policy and finance.
0xResearch: Alpha directly in your inbox. Market highlights, data, degen trade ideas, governance updates, token performance and more.
Lightspeed: Built for Solana investors, developers and community members. The latest from one of crypto’s hottest networks.
The Drop: For crypto collectors and traders, covering apps, games, memes and more.
Supply Shock: Tracking Bitcoin’s rise from internet plaything worth less than a penny to global phenomenon disrupting money as we know it.