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Canada’s Crypto Exodus: Bybit Walks Away 

source-logo  dailycoin.com 31 May 2023 12:30, UTC
  • Several crypto exchanges have chosen to leave Canada in recent months.
  • Bybit has joined the growing list.
  • The country recently opted to tighten its crypto rules.

In the wake of the FTX collapse in November 2022, some jurisdictions have chosen to tighten rules for crypto businesses. One such jurisdiction is Canada.

Several crypto firms have, however, opted to leave the North American country in response to these tighter restrictions. These firms include OKX in March and Binance on May 12.

In the latest instance, Bybit has announced plans to pause operations in the country.

Bybit Walks Away From the Canadian Market

In a blog post on Tuesday, May 30, Bybit announced that it would be exiting the Canadian market, citing regulation changes.

"It has always been Bybit's primary objective to operate our business in compliance with all relevant rules and regulations in Canada. In light of recent regulatory development, Bybit has made the difficult but necessary decision to pause the availability of our products and services," the firm wrote in its statement to customers.

The firm has notably stopped onboarding Canadian customers with plans to cease deposits and trading operations for existing Canadian customers from July 31.

Bybit has urged customers to close open positions before September 30 or face liquidation. Liquidated funds would, however, still be available for withdrawal after this period, according to the crypto exchange headquartered in Dubai.

In recent months, the Canadian Securities Administrators have urged crypto exchanges to register with them or cease operations. As part of so-called pre-registration undertakings, crypto exchanges seeking to register with the CSA must commit to separating customer deposits from operational funds and have a chief compliance officer. Exchanges must also scrap leverage trading and support for stablecoins.

Canada is not the only country experiencing a crypto exodus, as several crypto businesses based in the United States have also begun to focus efforts abroad in the wake of a regulatory crackdown.

On the Flipside

  • Not all crypto exchanges seek to leave Canada, as firms like Coinbase and Kraken have committed to pre-registration undertakings.
  • On Monday, May 30, Bybit announced that it had received in-principle approval to operate in Kazakhstan.
  • In April, Bybit revealed plans to expand to Hong Kong.

Why This Matters

Bybit’s decision to exit the Canadian market underscores the increased difficulty crypto businesses face in the country.

Read this to learn more about Binance’s exit from Canada:

Binance Canada Exit Leaves Crypto Community Split

Sam Bankman-Fried has placed his former law firm in the spotlight in hopes of shirking punishment for fraud charges. Find out more:

FTX Fraud Case: SBF Shifts Blame, Points Finger at Former Law Firm