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Bybit Follows Binance's Footsteps, Exits Canadian Market Amid Regulatory Concerns

source-logo  news.bitcoin.com 31 May 2023 12:30, UTC

In the wake of Binance’s departure from Canada, cryptocurrency exchange Bybit has announced its exit from the nation as well, citing “recent regulatory development” as the reason. Effective May 31, Bybit stated that it would cease accepting applications from Canadian residents.

Bybit to Pause Operations in Canada

According to a Tuesday announcement, Bybit is withdrawing from Canada and has suspended new registrations from Canadian residents as of Wednesday. Starting July 31, Canadians will be unable to deposit funds; however, they can still withdraw and reduce their trading positions for the time being.

“Canadian Customers who are implicated by these measures should take steps by September 30, 2023, 8AM UTC to wind down and manage their positions,” Bybit said. “Failing which, open positions in any margin products and derivative contractswill be liquidated and the liquidated funds will be available for withdrawal.”

While Bybit explained it has always prioritized compliance, it acknowledged that current regulations in Canada have created challenges. “In light of recent regulatory development, Bybit has made the difficult but necessary decision to pause the availability of our products and services,” the exchange explained, without specifying which particular regulations led to this decision.

Following Binance’s exit from Canada due to similar concerns, Bybit has chosen not to mention the possibility of returning to the Canadian market if regulations change. Although a “pause” suggests the possibility. Meanwhile, the exchange is expanding its reach by recently receiving in-principle approval to operate in Kazakhstan.

Are stricter regulations driving cryptocurrency exchanges away from Canada? Share your thoughts and opinions about this subject in the comments section below.