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Bitstamp, a well-known European cryptocurrency exchange, has announced its decision to discontinue its services in the Canadian market, effective January 8, 2024, in reaction to growing regulatory constraints in Canada.
Although the specific reasons for Bitstamp’s departure are yet unknown, Bobby Zagotta, the company’s U.S. CEO, recognized the seriousness of the decision and said it was “not a decision we took lightly.” He expressed hope for the potential to resume services in Canada in the future.
“We hope to be able to serve Canada again at some point in the future,” Zagotta remarked.
As a result of tougher regulatory criteria, Bitstamp has joined the increasing list of bitcoin trading platforms leaving the Canadian market. A number of businesses, including Binance, Paxos, DyDx, Bybit, and OKX, have taken comparable choices. The Canadian Securities Administrators (CSA) has set deadlines for bitcoin enterprises to register with regional regulatory bodies, which these departures follow.
Only a dozen cryptocurrency businesses now have the required approval to offer services to Canadian clients. Coinsquare, Bitbuy, Coinberry, VirgoCX, Newton Crypto, and Fidelity Digital Asset Services are among this exclusive club.
As required by the CSA, an additional 11 businesses have filed pre-registration undertakings. Several well-known businesses have followed suit, including Gemini, ByteX Financial, Payward Canada, and Coinbase Canada.
While saying goodbye to the Canadian market, Bitstamp is aggressively looking for business prospects in Europe. The exchange is now in talks with a number of important financial institutions in Europe. Despite not naming any specific institutions, Zagotta stated that Bitstamp is in “advanced conversations with three such banks, household name banks in Europe.”
This tactical choice fits in with Bitstamp’s long-term expansion goals. The exchange started a collaboration with Mike Novogratz’s cryptocurrency bank, Galaxy Digital, earlier in August 2023. Through this agreement, Bitstamp hoped to raise money to support its plans to enter the Asian and UK markets, reflecting the exchange’s aspirations for a truly worldwide presence.