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Cryptocurrency exchange Bitstamp plans to resume operations in Canada after halting services early next year, according to Bobby Zagotta, CEO of Bitstamp U.S. and global chief commercial officer.
Bitstamp confirmed in a statement to Cointelegraph that it will officially discontinue services for Canadian customers starting Jan. 8, 2024.
Following the termination of services, all Canadian accounts on Bitstamp will be closed, and customers will lose access to their accounts. Bitstamp has strongly advised Canadian customers to withdraw their funds by January 2024 and 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.
Explaining the decision to exit the Canadian market, Bitstamp U.S. CEO told Cointelegraph that the move is “primarily a timing issue” tied to the company’s current expansion priorities. Zagotta stated that the exchange is leaving Canada to refocus on regions where it can align “more effectively” with local regulations, 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.”
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Zagotta emphasized that Bitstamp remains committed to serving its global user base, noting that decisions regarding its presence in specific countries will likely depend on evolving regulatory environments and market conditions.
Bitstamp’s exit from Canada coincides with reports that the exchange is 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.
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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, Bitstamp’s daily trading volumes amount to roughly $114 million at publishing time. These volumes are significantly lower than those reported by major competitors like Binance, which trades nearly $4 billion per day, according to CoinGecko.
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