Canadian Crypto Crackdown Continues as OKX Announces Temporary Withdrawal,

Cryptocurrency exchange OKX has informed its Canadian users via email that it will no longer provide services or allow new accounts to be opened in Canada starting from March 24, 2023, citing new regulations. Existing Canadian customers have until June 22 to close open positions and withdraw fiat or tokens from their accounts. OKX has assured its users that their funds will remain safe until they are withdrawn and that they can withdraw dollars to their linked bank account and cryptocurrency to their self-custody wallet or another cryptocurrency account on a different exchange.

OKX has stated that its withdrawal from Canada is temporary and that it is working with regulators to resolve the issue. The exchange hopes to see its Canadian users again in the future. This move follows the departure of cryptocurrency exchange Bittrex Global, which off-boarded Canadian users in July 2022 after giving advance notice, citing regulatory developments as the reason for leaving the country.

On February 22, the Canadian Securities Administrators (CSA) published a notice requiring crypto exchanges to sign new, legally binding undertakings while they await registration with the regulatory authorities. The new undertaking includes a prohibition on buying or depositing Value Referenced Crypto Assets, commonly referred to as stablecoins, through crypto contracts without prior written consent from the CSA. However, it appears that the stablecoin USD Coin has not been affected by the ruling.

Currently, all cryptocurrency exchanges must register with Canadian regulators before onboarding users in the country. On June 22, 2022, ByBit and KuCoin were issued millions of dollars in fines by the Ontario Securities Commission for operating as "non-compliant platforms" in Canada.