Bitstamp to Temporarily Suspend Canadian Operations, Refocus on Global Expansion
Summary:
Bitstamp, a leading cryptocurrency exchange, is planning to cease operations in Canada from January 8, 2024. The decision is primarily due to the company's current expansion priorities and the need to align more effectively with local regulations. Despite this, Bitstamp remains committed to its international user base and may reconsider its place in specific countries based on regulatory changes and market conditions. The firm's exit from Canada coincides with its reported efforts to raise capital to expand its global operations.
Bitstamp, the digital currency marketplace, has plans to revisit its operations in Canada after announcing its scheduled closure early next year, according to insights shared by Bobby Zagotta, Bitstamp U.S. CEO and global chief commercial officer. Starting January 8, 2024, Bitstamp services for Canadian customers will be suspended, as revealed in a statement provided to Cointelegraph. This will result in the closure of all Bitstamp accounts in Canada, blocking client access. Bitstamp is strongly advising Canadian clients to liquidate their accounts by the specified date, and also to disable their accounts. Bitstamp clarifies that client assets still belong to their owners, and the company is dedicated to assisting customers who couldn't close their accounts on their own to retrieve their funds. Bitstamp’s move to exit the Canadian market is mainly a “scheduling concern” linked to the company's current growth objectives, Bitstamp U.S. CEO shared with Cointelegraph. Bitstamp is leaving Canada in order to refocus its attention on regions where the regulation of the business is more compatible with local ordinances, stated Zagotta, adding “We have plans for reentering this market; but presently, due to new regulations, we do not have the resources to address the workload." Zagotta underlined Bitstamp’s commitment to its worldwide clientele and the decision to restart operations in specific countries would be based on ever-changing regulation landscapes and market scenarios. Bitstamp’s departure from Canada is timed with the news of the exchange planning to raise capital to increase its worldwide reach. The platform, since May 2023, has reportedly been trying to gather new capital in a bid to initiate derivatives trading in Europe in 2024 and to expand its presence in the United Kingdom. Established in 2011, Bitstamp is known as one of the oldest digital currency exchanges in operation. As per the Bitstamp website, it currently provides services to several countries, including the United States, Singapore, South Korea, Japan amongst others. Data provided by CoinGecko suggests Bitstamp's daily trading volumes to be approximately $114 million at the time this news was published. These numbers are relatively low when compared to competitors such as Binance, which reportedly does daily trades worth nearly $4 billion, according to CoinGecko.
Published At
10/11/2023 9:49:52 AM
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