According to the cryptocurrency exchange, users in Ontario, Canada are encouraged to withdraw their assets before March.

Bitfinex said on Friday that it would be canceling customers’ accounts in Ontario with negative balances, starting immediately. Furthermore, individuals who do not have any open positions on the exchange’s peer-to-peer financing markets will be denied access, and those who do not have any open margin positions will be denied access to margin or borrowing.

Users holding open positions and balances on the exchange have until March 1 to withdraw their monies and cancel any open positions. It’s worth noting that Bitfinex provided no reason for the unexpected service outage.

However, the Ontario Securities Commission (OSC), which has lately restricted trading on centralized digital currency exchanges that sell derivative products, such as ByBit, Poloniex, and Binance, might be to blame for the company’s closure.

Binance was not approved to function in the region by the OSC in late December, just days after the exchange revealed its cryptocurrency services were open to citizens of the Canadian province. Binance then stated that there had been a miscommunication with the OSC and that it would be contacting the financial regulator to clear things out.

Regulators in the United States have slapped Bitfinex on the wrist

Bitfinex isn’t new to regulatory scrutiny. The Commodity Futures Trading Commission (CFTC) fined the exchange and its sibling business Tether a total of $42 million for allegedly promoting illicit cryptocurrency transactions and failure to register as a futures commission merchant (FCM).

In February, New York Attorney General Letitia James ordered the two companies to cease business in the city and pay $18.5 million.


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