Cryptocurrency exchange Bitstamp hopes to return to Canada after ceasing operations early next year, according to Bitstamp USA CEO and global commercial director Bobby Zagota.
Bitstamp will officially cease its services to clients in Canada starting January 8, 2024, the exchange confirmed in a statement to Cointelegraph.
As a result of the termination, all Canadian accounts on Bitstamp will be closed, and customers will no longer be able to access their accounts. Bitstamp strongly recommended that its Canadian customers withdraw their funds by January 2024, and also urged customers to deactivate their Bitstamp accounts.
“We want to ensure that your crypto assets always remain yours, and we are committed to reaching out to any customers who were unable to close their accounts on their own to ensure the return of their funds,” Bitstamp noted.
Bitstamp’s decision to cease operations in Canada is “primarily a timing issue” related to the company’s current expansion priorities, Zagota told Cointelegraph. He said the exchange is exiting the Canadian market to refocus on areas where Bitstamp can “more effectively” align with local regulations, adding:
“We hope to serve this market in the future; However, at this time, we are unable to prioritize the work and allocate the resources necessary to meet the new regulations.
Zagota stressed that Bitstamp remains committed to serving its global user base, and any decisions regarding its presence in specific countries will likely depend on evolving regulatory environments and market conditions.
Bitstamp’s exit from Canada comes amid reports that the exchange is raising money to expand its global operations. It is noteworthy that the platform has been working to secure new capital since May 2023 to launch derivatives trading in Europe in 2024 and expand its services in the United Kingdom.
Related: The Canadian regulatory body clarifies stablecoin rules for exchanges and coin issuers
Founded in 2011, Bitstamp is one of the oldest cryptocurrency exchanges in the world. According to According to Bitstamp, the platform was serving a large number of countries at the time of writing, including the United States, Singapore, South Korea, Japan, and others.
According to According to data from CoinGecko, Bistamp’s daily trading volume is approximately $114 million at press time. The volumes are significantly lower than those reported by major competitors like Binance, which trades roughly $4 billion a day, according to CoinGecko.
magazine: Blockchain Investigators – The collapse of Mount Gox gave birth to Chainalysis