Crypto derivatives exchange dYdX announces exit from Canadian market

Summary: Crypto derivatives exchange dYdX announced its withdrawal from the Canadian market. The move is to comply with the requirements of the Canadian Securities and Exchange Commission. Antonio Juliano, founder of dYdX, said that the withdrawal from the Canadian market is to avoid possible legal risks in the future.

Background introduction

dYdX is a crypto derivatives exchange that provides services such as document trading, insurance trading, futures and leverage trading. The exchange was established in 2017 and is headquartered in San Francisco, USA. As of March 2021, dYdX’s total assets have exceeded $200 million.

Reason for exiting the Canadian market

dYdX announced its withdrawal from the Canadian market mainly to comply with the requirements of the local Securities and Exchange Commission (OSC). Crypto derivatives exchanges registered in Canada are required to comply with Canadian securities regulations, which include registration, disclosure of necessary information, and regulatory compliance as required.

According to dYdX founder Antonio Juliano, exiting the Canadian market is to avoid possible legal risks in the future. "We understand that we still have a lot of work to do compared to the compliance requirements of the Canadian Securities and Exchange Commission," he said.

The current state of the industry of derivatives exchanges

Derivatives exchanges are a type of financial derivatives A trading platform whose main function is to provide trading of financial derivatives. Currently, there are two main types of derivatives exchanges around the world: one is traditional financial exchanges, such as the Chicago Mercantile Exchange (CME), New York Mercantile Exchange (NYMEX), etc.; the other is cryptocurrency exchanges. Such as BitMEX, dYdX, etc.

Compared with traditional financial exchanges, the legal and regulatory framework of cryptocurrency exchanges is vague and regulatory measures are not yet complete. Therefore, compliance initiatives by cryptocurrency exchanges are particularly important. Once an exchange fails to comply with regulatory requirements, it will face the risk of being shut down, causing serious losses to the company and users.

Conclusion

dYdX announced its withdrawal from the Canadian market in order to avoid possible legal risks in the future. This also shows that cryptocurrency exchanges need to strictly abide by regulatory regulations and continuously improve their own regulatory mechanisms. As the industry develops, a robust regulatory system will eventually be formed, which is of great significance to the long-term development of the industry.

The above is the detailed content of Crypto derivatives exchange dYdX announces exit from Canadian market. For more information, please follow other related articles on the PHP Chinese website!