December 11, 2023

Bitstamp’s departure from Canada is ‘timing issue,’ says CEO

Cryptocurrency exchange Bitstamp hopes to return to Canada after halting operations early next year, according to Bitstamp USA CEO and global chief commercial officer Bobby Zagotta.

Bitstamp will officially discontinue its services to customers in Canada starting from Jan. 8, 2024, the exchange confirmed in a statement to Cointelegraph.

As a result of the service termination, all Canada accounts on Bitstamp will be closed, and customers will no longer have access to their accounts. Bitstamp has strongly recommended its Canadian customers withdraw their funds by January 2024, also urging the clients to deactivate their Bitstamp accounts.

“We want to emphasize that your crypto assets always remain yours, and we are committed to reaching out to any customers who were unable to close their accounts themselves to ensure the return of their funds,” Bitstamp noted.

Bitstamp’s decision to discontinue operations in Canada is “primarily a timing issue” related to the company’s current expansion priorities, Zagotta told Cointelegraph. The exchange is exiting the Canadian market to refocus on regions where Bitstamp can align “more effectively” with local regulations, he said, adding:

“We hope to serve this market in the future; however, at this time, we are unable to prioritize the work and allocate the necessary resources to meet new regulations.”

Zagotta emphasized that Bitstamp remains committed to serving its global user base, and any decisions regarding its presence in specific countries would likely depend on evolving regulatory environments and market conditions.

Bitstamp’s exit from Canada comes amid the exchange reportedly raising funds to scale its global operations. The platform has reportedly 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: Canadian regulatory body clarifies stablecoin rules for exchanges and issuers

Founded in 2011, Bitstamp is one of the world’s longest-running cryptocurrency exchanges. According to the Bitstamp website, the platform serves a large number of countries at the time of writing, including the United States, Singapore, South Korea, Japan and others.

According to data from CoinGecko, Bistamp’s daily trading volumes amount to roughly $114 million at publishing time. The volumes are significantly lower than volumes reported by major competitors like Binance, which trades nearly $4 billion per day, according to CoinGecko.

Magazine: Blockchain detectives — Mt. Gox collapse saw birth of Chainalysis