Bybit Joins Binance in Exit from Canadian Crypto Market – What's Going On?
Crypto exchange Bybit has announced plans to exit Canada, citing growing regulatory scrutiny in the country.
"In light of recent regulatory development, Bybit has made the difficult but necessary decision to pause the availability of our products and services," the crypto platform said in a Tuesday blog post.
Bybut added that Canadian users would not be able to open new accounts starting Wednesday, May 31, while existing Canadian users will no longer be able to make deposits or trade after July 31.
It suggested all users in the jurisdiction close out their positions by September 30 otherwise they will be liquidated.
The platform is the latest in a string of crypto firms to pull out of the country, following similar moves from other major exchanges including Binance and OKX.
Earlier this month, the world’s largest crypto exchange said that it was withdrawing from the country due to new guidance about stablecoins and limits to investors.
“We put off this decision as long as we could to explore other reasonable avenues to protect our Canadian users, but it has become apparent that there are none,” Binance said at the time.
Likewise, OKX revealed in March revealed that it’s exiting the Canadian market, blaming new regulations for the departure.
Other notable exits from Canada include Paxos, dYdX, and Bittrex.
Canadian Securities Administrators in February 2023 introduced new rules mandating crypto firms to make commitments to protect investors through “an enhanced pre-registration undertaking.”
Under the CSA’s “pre registration undertakings,” firms have to agree to segregation in crypto custody, and they must have a chief compliance officer on staff.
They must also eliminate leveraged trading and not allow users to trade or hold
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