Bybit has joined a growing list of exchanges that have decided to leave the Canadian market, bringing attention to the difficulties encountered by the industry as a result of Canada’s changing regulatory landscape.
Bybit has recently announced its suspension of services for Canadian citizens and residents due to significant changes in Canada’s regulatory landscape.
Effective May 31st, 2023, Bybit will no longer accept new account applications from Canadian residents or citizens, and the complete cessation of services is scheduled for July 31st.
Existing clients will have until this date to utilize the exchange’s products and services, with open positions in margin products and derivative contracts held by Canadian customers automatically liquidated as of September 30th.
Bybit attributed its decision to depart the Canadian market to “recent regulatory development.”
Crypto exodus in Canada looms
The withdrawal follows the introduction of stricter restrictions on the cryptocurrency industry in Canada earlier this year. In February, the country implemented regulations requiring exchanges to comply with new guidelines or exit the market.
Notably, exchanges are now prohibited from offering leverage options, and without prior written authorization from regulators, they cannot facilitate the purchase or deposit of stablecoins.
Bybit is the latest in a series of exchanges that have chosen to withdraw from Canada as a result of these regulatory changes.
Binance, OKX, dYdX, and Paxos
Binance, one of the largest crypto exchanges globally, announced in May that it would suspend services for Canadian customers due to the untenable legal environment.
While the exchange expressed a desire to return “someday,” its departure has left a significant void in the Canadian market.
Furthermore, OKX, dYdX, and Paxos have also made the decision to temporarily halt operations in Canada, adding to the growing exodus of crypto exchanges from the country.
Gemini, Kraken, and Coinbase
On the other hand, some exchanges have opted to comply with the new regulatory framework and expressed support for increased regulation within the cryptocurrency industry.
Both Coinbase and Kraken have affirmed their commitment to continue operating in Canada, despite acknowledging the limitations imposed by the new regulations.
As for Gemini, the exchange took proactive measures by filing a pre-registration with the Ontario Securities Commission in April, demonstrating its willingness to work within the new regulatory environment.
Final Thoughts
The departure of Bybit and other crypto exchanges from the Canadian market highlights the challenges faced by the industry in a rapidly evolving regulatory landscape.
While some exchanges have chosen to adapt and comply, others have found it more feasible to exit the market entirely. The situation emphasizes the importance of striking a balance between regulatory oversight and fostering innovation within the cryptocurrency space.
As the Canadian market adjusts to these changes, industry participants and regulators must continue to engage in open dialogue to develop a regulatory framework that fosters growth while ensuring consumer protection and market integrity.
Rickie Sanchez is an article writer specializing in cryptocurrency news. Since late 2017, he has been actively investing in cryptocurrencies. He is enthusiastic about everything that has to do with crypto and he hopes that the readers of his articles in the years to come will gain a massive understanding of blockchain technology.
