Bybit Joins Binance and Others to Exit Canada

Wednesday, 31/05/2023 | 06:15 GMT by Arnab Shome

The crypto exchange will stop accepting new Canadian customers from May 31.

It will wind down all services for existing Canadian customers by September 30.

Bybit has become the latest cryptocurrency exchange to announce its exit from the Canadian market due to the country's recent regulatory requirements for the industry. The exchange's exit will be made in phases, starting today (Wednesday).

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

Another Crypto Exchange Exits Canada

The exchange will stop accepting new users identified as Canadian residents and existing Canadian nationals from May 31. Most of the services, including fiat deposits and withdrawals, offered to the existing Canadian customers of Bybit will be terminated on July 31, while open positions will be liquidated on September 30.

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

Regulations Are Harsh

Bybit's decision came as the Canadian Securities Administrators (CSA) mandated the registration of all cryptocurrency exchanges that include tough due diligence processes. The financial market regulator of the Canadian state of Ontario is another regulator with harsh requirements that have pushed several crypto exchanges not only out of the state but also the country.

Before Bybit, Binance, the largest crypto exchange in terms of trading volume, decided to shutter operations in Canada, citing harsh requirements around 'stablecoins and investor limits'. The CSA labeled stablecoins as 'securities and/or derivatives,' prohibiting crypto exchanges from offering services with stablecoins. Other prominent names to exit Canada are Paxos and OKX.

However, a few well-known cryptocurrency exchanges, including Coinbase, Kraken, and Gemini, have decided to further bolster their Canadian presence and seek a new registration. Coinbase, which is in an ongoing legal tussle with the US regulators over crypto regulations, also praised Canada's approach towards the industry.