According to Bitstamp USA CEO, the company’s expansion goals are “primarily a timing issue” that led to Bitstamp’s decision to end operations in Canada.
According to Bobby Zagotta, CEO and worldwide chief commercial officer of Bitstamp USA, the cryptocurrency exchange plans to reopen in Canada after ceasing operations early in 2019. According to a statement provided by the exchange, Bitstamp will formally stop providing its services to users in Canada on January 8, 2024.
All Bitstamp accounts registered in Canada will be terminated due to the service termination; users will no longer be able to access their accounts. It has been strongly advised by Bitstamp that its Canadian consumers deactivate their Bitstamp accounts and withdraw their funds by January 2024.
The statement from Bitstamp read, “We want to emphasise 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.”
According to Zagotta, the company’s current expansion ambitions are the main reason behind Bitstamp’s decision to end operations in Canada. He claimed that Bitstamp is leaving the Canadian market in order to concentrate on areas where the company can “more effectively” comply with local laws.
“We are unable to prioritise the work and allocate the necessary resources to meet new regulations at this time, but we hope to serve this market in the future.”
Zagotta stressed that Bitstamp is still dedicated to helping its user base worldwide and that any choices about its presence in particular nations would probably be based on how the market and regulatory landscape change over time.
The withdrawal of Bitstamp from Canada coincides with reports that the exchange is gathering money to expand internationally. According to reports, the platform has been trying to raise fresh funding since May 2023 in order to extend its services in the UK and begin offering derivatives trading in Europe in 2024.
The world’s oldest cryptocurrency exchange, Bitstamp was established in 2011. In addition to the United States, Singapore, South Korea, Japan, and other nations, the Bitstamp website states that the platform currently supports a significant number of countries.
Bistamp’s daily trade volumes at the time of posting were around $114 million, based on CoinGecko data. The reported volumes of prominent competitors, such as Binance, which facilitates daily trades of about $4 billion, are far higher than the current volumes.