Bitstamp Bids Farewell To Canadian Operations, Exec Mentions Probability Of Return

Cryptocurrency exchange Bitstamp is exiting Canada.

What Happened: The Luxembourg-based firm announced that it will officially discontinue its services for Canadian customers, effective Jan. 8, 2024.

However, Bitstamp USA CEO and global chief commercial officer Bobby Zagotta believes that the exchange has hopes of returning to Canada.

Also Read: Binance Breaks Up With Canada - Crypto Giant Abandons the North American Country

After service termination, all Canada accounts on Bitstamp will be closed, and customers will not have access to their accounts. Users have been directed to withdraw funds by January 2024 and deactivate their Bitstamp accounts.

Cointelegraph cites Zagotta who mentions that the exit is mainly a timing issue and is related to the company’s current expansion priorities.

The exchange plans to refocus on regions where Bitstamp can align more effectively with local regulations.

The company is trying to raise funds to scale its global operations. For launching derivatives trading in Europe in 2024 and expanding its U.K. services, it has been working towards securing fresh capital since May 2023.

Why It Matters: Bitstamp isn't the only exchange leaving Canadian markets. Binance, Bybit, OKX, Paxos, and dydx also closed operations there.

Zagotta explained that any decisions regarding Bitstamp’s presence in specific countries will largely depend on the rapidly changing regulatory environments and market conditions.

Read Also: Canadian securities regulators clarify interim approach to value-referenced crypto assets

In early 2023, Canadian Securities Administrators (CSA) provided crypto asset exchanges a deadline of late March to register themselves and meet the pre-registration requirements.

On Oct. 6, the regulatory body announced that it would allow stablecoins to trade if issuers agreed to hold on to an appropriate asset reserve with a qualified custodian. However, these changes will not change Canada’s stance on crypto and it does not mean that an asset is approved.

Read Now: Bank Of Canada - CBDC Can Assist With Financial Inclusion As Cash Usage Declines

Benzinga's Future of Digital Assets conference is scheduled for Nov. 14. Attend and learn more about global regulatory frameworks. The gathering is seen as pivotal for the digital asset community. The event will spotlight the latest trends, innovations, and challenges in the digital asset realm.

Bitstamp was founded in 2011 and serves many countries like the U.S., Singapore, South Korea, and Japan.

Based on CoinGecko data, the exchange reports $115 million in 24-hour trading volume with 75 trading coins. Bitstamp boasts a trust score of 9 which is relatively strong as Binance reports 10.