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Dubai-based cryptocurrency exchange Bybit has announced its decision to temporarily halt its operations and services for Canadian residents and nationals. The move comes in response to recent regulatory changes affecting the company’s operations in Canada.
In a blog post dated May 30, Bybit stated that it will no longer accept new account opening applications from Canadian users starting May 31. Existing customers will be allowed to make deposits and increase their positions until July 31. However, after September 30, all remaining positions will be liquidated as the exchange phases out its services in the country.
Bybit did not provide specific details regarding the regulatory changes that prompted its exit from the Canadian market, only referring to them as “recent regulatory development.” It should be noted that the Ontario Securities Commission had previously imposed financial penalties on Bybit in June 2022. Additionally, the exchange had announced its plans to implement mandatory Know Your Customer requirements for all users, beginning in May 2023.
Regulatory Headwinds
Bybit, which has its headquarters in Dubai, made the decision to exit the Canadian market while simultaneously exploring opportunities for expansion into other regions. It said,
“As the adoption of crypto continues to grow, our mission is to provide safer and sustainable trading experience to all crypto enthusiasts while maintaining necessary safeguards.”
The company recently received “in-principle” approval from regulators in Kazakhstan, demonstrating its interest in entering new markets. Bybit’s decision to withdraw from Canada followed the introduction of its cryptocurrency lending services.
The move by Bybit to exit the Canadian market aligns with a trend among other cryptocurrency firms facing regulatory challenges. In April, decentralized exchange dYdX announced a gradual cessation of services for Canadian users, citing the country’s “regulatory climate” as the reason. Similarly, major crypto exchange Binance announced its proactive withdrawal from Canada in May, citing regulations set forth by the Canadian Securities Administrators.
As the adoption of cryptocurrencies continues to grow globally, Bybit remains committed to providing a safer and more sustainable trading experience for crypto enthusiasts while maintaining necessary safeguards. The company’s decision to exit the Canadian market underscores the challenges faced by crypto exchanges in navigating evolving regulatory frameworks around the world.
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