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Crypto Exchange Bybit Quits Canada after New Set of Regulations

source-logo  thecoinrepublic.com 31 May 2023 15:00, UTC

Crypto exchange Bybit declared on Wednesday, May 31, that Canadian users would no longer be able to open accounts on its platform. It also added that existing Canadian users could not trade or deposit after July 31. Hence, it has advised them to close their accounts, or they will be liquidated by September 30.

According to the Canadian authorities, exchanges like OKX, Paxos, and others do not want to regulate their firms. Other than Bybit, several other crypto firms, including OKX, stablecoin issuer Paxos, etc., showcased their unwillingness to comply with the Canadian authorities’ enforcement actions. Today, they have moved their crypto platforms out of Canada.

CSA Insisting Crypto Exchanges for Registration

The Canadian Security Administration (CSA) insists crypto exchanges begin with the registration process or else cease operations. Many exchanges that did not have the needed requirements, which were due by March 23, simply decided to leave the country. On the flip side, not all crypto companies are leaving the country in a snap.

Coinbase, the biggest crypto exchange in the U.S., signed a pre-registration undertaking (PRU) on March 24 and has pledged to work with Canadian regulators to build a robust “regulatory framework.”

Other companies like Kraken, a U.S.-based exchange, and Bitbuy, the top exchange in Canada, are also not leaving. They have signed the PRU with the regulators on March 30.

Bybit Not in Favour of New Rules on Crypto Exchanges

Bybit, which is headquartered in Dubai, has decided to exit Canada due to the new crypto regulations. Under this regulation, cryptocurrency exchange registration is necessary, and exchanges must eliminate leveraged trading. Also, they do not allow users to trade or hold stablecoins.

Bybit, who is not in favor of the regulations, decided to move out of Canada. It has said that it would stop taking new deposits, and existing Canadian users can withdraw their accounts. Furthermore, they have paused the availability of products and services.

Exchanges Must Abide with New Regulations

The CSA has implemented a new set of regulations on crypto exchanges. The exchanges have to abide by the rules. This means that without the permission of the CSA, there will be a ban on selling stablecoins, a ban on margins, or any other form of leverage.

The declaration of regulations to register compliance with the new set of regulations was made in February. The new guidelines related to stablecoins and investor limits made some exchanges like Bybit and OKX exit Canada.

Although Bybit has decided to exit Canada, it is exploring its expansion in some new markets like Kazakhstan. It was reported to provide trading facilities in the fast-growing market of Kazakhstan. It is aimed to cater to the user-friendly way of crypto trading, which will be more secure while transferring funds.