Tag: Canada

dYdX to Exit Canadian Market

by Blockchain News

Cryptocurrency derivatives exchange dYdX has announced that it will be exiting the Canadian market due to regulatory restrictions. In an April 7 blog post, the exchange revealed that it would be winding down services in Canada over the next seven days. The move will begin with halting the onboarding of new users located in the country.

On April 14, dYdX will shift all existing Canadian users to “close-only mode,” which will allow them to withdraw funds but not engage in any new transactions. The exchange hopes for a change in the regulatory climate that will allow it to resume services in Canada.

In the blog post, dYdX stated its commitment to providing transparency around product decisions and democratizing access to financial opportunity. The exchange expressed hope that the regulatory climate in Canada would eventually change, enabling it to resume services in the country.

This move by dYdX follows the Canadian Securities Administrators announcing additional restrictions for crypto exchanges’ registration requirements in the country. According to the rules, platforms were prohibited from permitting Canadian clients to enter into crypto contracts to buy and sell any crypto asset that is itself a security and/or a derivative.

The regulatory restrictions in Canada have become a growing concern for cryptocurrency exchanges, with many having to shut down or exit the market altogether. It remains to be seen how the regulatory landscape will evolve in the future.

Notably, dYdX faced criticism from users and those in the crypto space in September 2022. The exchange had offered a $25 deposit bonus for confirming someone’s identity using a live webcam image. The promotion was later ended, citing “overwhelming demand” rather than privacy concerns put forth.

dYdX is a popular cryptocurrency derivatives exchange that allows users to trade various cryptocurrency assets on margin. The exchange has gained popularity in recent years due to its user-friendly platform and high liquidity.

In conclusion, dYdX’s decision to exit the Canadian market highlights the increasing challenges faced by cryptocurrency exchanges in the country. The regulatory restrictions have made it difficult for exchanges to operate, and it remains to be seen how the situation will evolve in the future. Nevertheless, dYdX’s commitment to transparency and democratizing access to financial opportunity remains unwavering.

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dYdX to Exit Canadian Market Amid Regulatory Restrictions

by Blockchain News

Cryptocurrency derivatives exchange dYdX has announced that it will be exiting the Canadian market over the next seven days. In an April 7 blog post, the company stated that it will be “winding down services” in Canada, beginning with the halting of new user onboarding in the country. On April 14, the exchange will move all existing Canadian users to “close-only mode,” allowing them to only withdraw funds.

According to dYdX, the decision was made due to increased regulatory restrictions in Canada. The Canadian Securities Administrators recently announced additional restrictions for crypto exchanges’ registration requirements in the country. The new rules require platforms to prohibit Canadian clients from entering into crypto contracts to buy and sell any crypto asset that is a security and/or a derivative.

dYdX stated in its blog post that it is committed to transparency and democratizing access to financial opportunity. The exchange expressed hope that the regulatory climate in Canada will eventually change, allowing it to resume its services in the country.

This move by dYdX follows criticisms the exchange received in September 2022 when it offered a $25 deposit bonus for confirming someone’s identity using a live webcam image. Many dYdX users and individuals in the crypto space raised privacy concerns, and the exchange ended the program due to “overwhelming demand.”

dYdX is a decentralized exchange that specializes in cryptocurrency derivatives trading. It is among the many cryptocurrency exchanges that have faced increased regulatory scrutiny in recent years, particularly regarding investor protection and anti-money laundering measures.

Although dYdX’s exit from the Canadian market may be a setback for the company, it is reflective of the challenges that many cryptocurrency exchanges face in navigating regulatory environments around the world. As the crypto space continues to evolve and mature, it is likely that regulatory authorities will continue to monitor and regulate the industry to ensure investor protection and mitigate risks associated with the emerging asset class.

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OKX to Halt Services in Canada Due to New Regulations

by Blockchain News

OKX is a cryptocurrency exchange that was launched in China in 2017 and facilitates trading in a number of different digital assets. Bitcoin, Ethereum, and Litecoin are some of the cryptocurrencies that are included in this category. As a result of the fact that its daily trading volume is more than $2 billion, it is regarded as being one of the most significant cryptocurrency exchanges in the whole world.

On February 22, 2023, the Canadian Securities Administrators (CSA) issued a notice requiring all cryptocurrency exchanges to make new legally enforceable undertakings while they wait to be registered with the regulatory body. The notification was published online. Due to the publication of this notification, the cryptocurrency exchanges have made the decision to put an end to their business activities in Canada. The new initiative makes it illegal to “purchase or deposit Value Referenced Crypto Assets (often referred to as stablecoins) via crypto contracts without the prior written authorization of the CSA.” This action is described as “purchasing or depositing Value Referenced Crypto Assets” in the original sentence.

The decision made by the CSA is a part of a bigger crackdown on trading cryptocurrencies in Canada, which is being carried out by authorities in an attempt to bring the sector under greater control. The authorities’ motivation for carrying out this crackdown is stated in the following sentence: At the present, cryptocurrency exchanges are obliged to first register with the regulating authorities of Canada in order to be able to accept new clients from inside the country’s borders. On June 22, 2022, after an investigation by the Ontario Securities Commission found that both ByBit and KuCoin were operating “non-compliant platforms” in the country, the commission fined both companies millions of dollars because they were “non-compliant platforms.” The investigation was conducted by the Ontario Securities Commission.

OKEx has said that it would only be temporarily withdrawing its services from the Canadian market and that it is now working with the relevant authorities in Canada to find a solution to the issue. The exchange has not issued any indication as to when it believes it will resume operations in Canada, and it has not specified a specific date either.

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Scammers Target Australians in Cryptocurrency Call Center Scheme

by Blockchain News

It has come to light that people of Australia are the principal targets of a sophisticated multinational network of con artists that operate out of call centers focused on bitcoin. The network is believed to have originated in China. The heart of operations for the network may be found on the continent of Australia. It is commonly believed that the administration of this network is being handled by criminal syndicates that have their headquarters in Israel.

As part of a large-scale operation, law enforcement officers from the countries of Serbia, Germany, Bulgaria, and Cyprus carried out house searches in a total of eleven locations across the country of Serbia, including four call centers. These locations included the country’s capital city of Belgrade. Officials from the island nation of Cyprus were responsible for the operation’s coordination. During the course of this operation, they discovered evidence showing that Australians were among the citizens of all of the other countries who were exposed to the highest degree of examination. This information suggests that Australians were among those subjected to this level of inspection. The material was made available to the general public on February 23 via the dissemination of an article that had been authored by The Australian and published on that day.

Fifteen individuals and about 1.46 million dollars’ worth of cryptocurrencies were seized into custody as a direct result of the operations, which were carried out as a direct consequence of the acts.

It would seem that con artists who work out of these contact centers are using advertisements on social media in an effort to persuade fresh victims into falling for their schemes. They achieve this goal by ensuring prospective investors that any investments they make would result in a significant return on the cash that they have invested. The findings of the research reveal that individuals do engage in this activity, which testifies to the notion that it is prevalent since it indicates that people do participate.

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Hut 8 Mining Corporation Ramps Up Fight Against Power Supplier

by Blockchain News

The Bitcoin (BTC) miner Hut 8 Mining Corporation, which is located in Canada, has taken the struggle it has been having with the power supply for one of its mining sites to a higher level by filing a lawsuit in a court in Canada.

Hut 8 said on January 26 that it has submitted a Statement of Claim against Validus Power, an energy provider for a Hut 8 mining plant located in North Bay, Ontario. The lawsuit was brought in the Superior Court of Justice in the province of Ontario.

Since the beginning of November, these companies have been engaged in an ongoing dispute that stems from what Hut 8 claims is a failure by Validus to “meet its contractual responsibilities” under the power purchase agreement.

Hut 8 is seeking “monetary damages suffered as a consequence of the disagreement” and the implementation of certain elements according to the agreement signed by the two firms in its most recent lawsuit against the latter.

Late in 2021, Hut 8 and Validus began collaborating on several projects. Validus was the one that first supplied North Bay with 35 megawatts (MW) of electricity; however, that number climbed to around 100 MW by the end of 2021. Hut 8 was in charge of managing the project.

On November 9, Hut 8 served Validus with a notice of default, asserting that the latter had breached the terms of the power purchase agreement by failing to meet certain milestones by the dates specified in the agreement and by requiring that Hut 8 pay a higher price for the energy it purchased than what was specified in the agreement.

In the latter part of that month, Hut 8 sent an update in which it was disclosed that Validus had stopped delivering electricity to its North Bay location. Validus retaliated by sending Hut 8 its own default notice, in which it said that the latter had failed to pay for the electricity costs incurred by the former. Hut 8 refutes this assertion.

To this day, there has been no restart of business activity at the location. Hut 8 has said that it is investigating other options to lessen the effect of the dispute, including “organic and inorganic development potential.”

According to an investor presentation from December, the North Bay location had 8,800 crypto mining rigs and a hash rate capacity of 0.84 exahashes per second (EH/s) before it was taken down. This accounted for more than one-fourth of the facility’s overall output capacity.

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Canada’s Federal Government Begins Consultations on Digital Currency

by Blockchain News

The federal government of Canada announced in a budget update released Thursday that it has started discussions on “cryptocurrencies, stablecoins and central bank digital currencies (CBDCs).”

Deputy Prime Minister Chrystia Freeland released the government’s “Fall 2022 Economic Statement” on November 3 as a fiscal update in conjunction with its main annual budget. It focuses on the issue of “currency digitization”, with an emphasis on cryptocurrencies and digital assets and their use on a global scale.

The widespread use of cryptocurrencies is “transforming the financial system in Canada and globally,” and Canada’s financial regulatory framework must “keep up,” the document said while outlining some plans to “address the digitization of currencies.”

In an official document statement, relevant stakeholder consultations on digital currencies, stablecoins, and CBDCs will be launched on November 3. The document did not disclose a list of specific stakeholders.

The Government of Canada will initiate a financial sector legislative review with the primary goals of digitizing the currency and maintaining the stability and security of the financial sector.

Over the past few months, digital assets and cryptocurrencies have been used to evade global sanctions and fund illicit activities.

In January, protests erupted in Canada’s capital, Ottawa, over the authorization of a COVID-19 vaccine and restrictions in Canada.

One month later, the Ontario Superior Court froze millions of dollars and cryptocurrencies related to organizers of the Ottawa “Freedom Motorcycle” protest by obtaining a so-called Mareva injunction. Experts say this is the first time Canada has used a rare legal tool to crack down on cryptocurrencies.

To address the issue, the Canadian government launched a consultation on digital currencies on Thursday and will also review the “potential demand” for a Bank of Canada CBDC.

In September, Bitcoin-friendly Pierre Poilievre was elected leader of the Conservative Party of Canada.

Pierre Poilievre has previously promised that if he becomes Prime Minister of Canada, he will “unlock” the potential of cryptocurrencies by consulting with provincial authorities, helping to unravel the regulatory web that currently governs cryptocurrencies, and making Canada “the world’s blockchain leader.”

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Crypto Advocate Pierre Poilievre Elected as Leader of Canada’s Conservative Party

by Blockchain News

Bitcoin-friendly Pierre Poilievre was elected leader of the Conservative Party of Canada on September 11.

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Pierre Marcel Poilievre is a Canadian politician who has served as the leader of the Conservative Party of Canada and the leader of the Official Opposition since 2022. Poilievre has served as a member of Parliament (MP) since 2004.

The House of Representatives of Canada’s parliament is scheduled to resume on September 20, when Poliyev will lead the Conservative Party in his new capacity to challenge the Trudeau government on a number of issues.

He is a staunch cryptocurrency advocate and has publicly supported allowing Canadians to use bitcoin as legal currency in the country.

He touted cryptocurrencies as a solution to putting people back in control of their currencies and saw them as a way to escape inflation in the country.

Pierre Poilievre has previously promised that if he becomes Prime Minister of Canada, he will “unlock” the potential of cryptocurrencies by consulting with provincial authorities, helping to unravel the regulatory web that currently governs cryptocurrencies, and making Canada “the world’s blockchain leader.” 

Along with the growth in the crypto sector, Canada has also been keeping an eye on security-related issues.

According to September 24, 2021, a report by Blockchain.News, Canadian market regulators have issued warnings to cryptocurrency service providers who mislead investors through their gambling-style advertisements.

The report added that the market regulators said a detailed guideline has been released to help all concerned stakeholders market to sell their products and services under the Canadian securities allowance.

Alberta, Canada’s most oil-rich province is actively looking to build the region’s tech industry, including mining digital tokens, building data centers, and attracting high-tech workforces.

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Ripple Opens First Office in Canada with New Growth Plan

by Blockchain News

Ripple, a company behind XRP cryptocurrency, has announced that it is opening a new office in Toronto, which will serve as an engineering hub. The new office, Ripple’s first footprint in Canada, will support the company’s continued growth in North America and beyond.

The firm plans to initially hire 50 engineers in Toronto with the goal to expand to hundreds of blockchain software engineers, including applied machine learning scientists, data scientists, and product managers.

Brad Garlinghouse, CEO of Ripple, commented about the development: “Crypto and blockchain present an incredible opportunity for engineers to tackle difficult problems, with the potential for these solutions to impact the movement of value around the world.”

Despite the current market conditions that have seen many other crypto firms announcing massive layoffs and hiring freezes, Ripple plans to hire hundreds of people globally this year. Ripple wants to bring in the best talents by helping the company’s innovation and serve its clients for years to come. The firm opened new offices in key cities, including Miami and Dublin, in the previous year alone.

The launch of the Toronto office further strengthens Ripple’s commitment to a region that is already a tech hub where it can tap into the local talent pool and hire top engineers to develop crypto innovation in Toronto.

The move by Ripple demonstrates another clear demand for greater access to the digital economy. The Canadian crypto market is becoming increasingly robust and therefore sets the perfect stage not only for Ripple’s expansion but also for other companies’ international growth.

A week ago, Bahamas-based FTX Exchange, one of the world’s largest crypto firms, also opened its business in Calgary location in Canada, by acquiring Bitvo Inc., a Calgary-based crypto exchange.

The move by FTX came amid extreme industry volatility, as digital assets continue to fall to multiyear lows. Many crypto firms, such as BlockFi, Crypto.com, Coinbase, and others, have made deep cuts to their workforce. A prominent crypto lending firm Celsius Network recently suspended operations indefinitely, a situation that has left millions of its users in limbo and accelerated a global collapse of the crypto market.

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Crypto Miner Hut 8 Launches New Facility in Ontario, Bitcoin Mining Production Remains Robust

by Blockchain News

On Monday, Hut 8 Mining Corp, a Bitcoin mining company, published its Bitcoin (“BTC”) production and miner installation updates for May 2022.

Based on the latest report by Hut 8 Mining Corp, the cryptocurrency mining business is a good investment. It is evident that most miners look solidly profitable. 

Hut 8 improved its Bitcoin holdings in the period that ended May 31. Last week on Thursday, the mining firm announced that it started operations in its third mining facility at its North Bay site in Ontario, Canada. In late May, the company began testing its North Bay facility and started operating on 15 MW of power on June 2, adding approximately 400 PH/s to its operating capacity.

According to the report, Hut 8 mined 309 Bitcoins in May, hitting an average production rate of 10 Bitcoin per day. The firm decided to hold on to all of its self-mined Bitcoins in line with its long-standing HODL strategy.

As of May 31, Hut 8 said that it has a total of 7,078 BTC held on its balance sheet and installed an operating capacity of 2.64 exahash per second. Its Ethereum mining constituted about 14% of its total production, the company mentioned.

According to the company’s statement, since power costs continued to fluctuate throughout the month, the firm had to limit consumption at its facility at Drumheller (a town in Canada) as the spot price for power spiked.

Hut 8 said it is continuing to add miners and increase its power supply throughout June and expects that the North Bay mine will have a significant impact on its production results going forward.

Jaime Leverton, CEO of Hut 8, talked about the development and said: “We are thrilled that our most powerful and efficient machines are now mining Bitcoin at our North Bay site. Over the next several weeks, our team will continue installing and bringing miners online in real-time, complementing production at our facilities in Medicine Hat and Drumheller.”

Investors Seeing Compelling Opportunities in Miners

The latest development by Hut 8 is a testimony that crypto mining companies are providing a compelling investment alternative compared with other forms of direct and indirect exposure to cryptocurrencies.

Mining is still highly profitable and gross margins remain super healthy despite the sharp decline in crypto prices and an increasing network hashrate.

Major Bitcoin mining firms such as Marathon Digital, Hut 8, Bitfarms, Hut 8, Argo Blockchain, and Bit Digital have continued to build cost leadership and production scale, which provide better investment opportunities than volatile cryptocurrencies.

They have become a popular way in which many investors seek to invest indirectly in the underlying asset.

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Americans Present Stronger Desires than Canadians in Crypto, Ipsos Study Shows

by Blockchain News

The intention of investing in cryptocurrencies like Bitcoin (BTC) or using tokens as a payment option among Americans is higher than among Canadians, according to a new survey by Ipsos. 

Per the study:

“Globally, one in three (35%) internet users are likely to invest in Bitcoin or another cryptocurrency as a short-term investment (USA 24%; Canada 17%).”

The preference for crypto is higher among Americans than Canadians based on varying reasons, like sheltering their wealth from taxes and avoiding cross-border banking fees. 

One factor that makes Canadians lag behind Americans in crypto investment and usage entails differing attitudes. 

Fen Hampson, Chancellor’s Professor at Carleton University, pointed out:

“Given the big differences in attitudes between Canadians and Americans towards cryptocurrencies, there may be diminishing political capital in the Canadian population at large for those who want to promote the idea that consumers will use cryptocurrencies instead of the Loonie. However, in the United States, it is a different story.”

Lower crypto intake noted in Canada

According to Sean Simpson, an Ipsos member:

“It is notable that intended uptake of cryptocurrencies is lower in Canada than in most countries surveyed. Conservative leadership hopeful Pierre Poilievre has advocated for cryptocurrencies and their ability to help users opt out of inflation.”

A contrasting scenario is observed in the U.S. because of a more receptive audience, with Wyoming Senator Cynthia Lummis leading the pack as a vocal crypto supporter. She seeks to have this sector regulated and normalized. 

Meanwhile, the appeal for crypto use is higher among younger generations. Per the report:

“In the United States, four in ten (40%) Americans aged 18-34 are at least somewhat likely to use a cryptocurrency to buy a good or service in the next year. In Canada, those aged 18-34 are most inclined to say they’re at least somewhat likely (29%) to use a cryptocurrency in the next year to buy a good or service.”

A recent poll by NBC News revealed that one in five (20%) Americans had used, traded, or invested in cryptocurrency.

The online Ipsos Survey interviewed 14,519 internet users in 20 countries between November 10 and 24, 2021. The respondents were aged between 16 and 74 years.

The countries involved included Sweden, Turkey, the United States, Spain, Singapore, the Republic of Korea, South Africa, Poland, Mexico, Kenya, Japan, Israel, Indonesia, India, Great Britain, Germany, France, Canada, Brazil, and Australia. 

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Bitcoin (BTC) $ 25,778.91 3.95%
Ethereum (ETH) $ 1,816.35 3.01%
Litecoin (LTC) $ 87.59 6.16%
Bitcoin Cash (BCH) $ 109.40 4.16%