Bybit Joins Other Exchanges In Exiting Canadian Market

Bybit, a prominent cryptocurrency exchange, has announced its decision to exit the Canadian market starting May 31, citing recent regulatory developments in the country. This move follows several other exchanges that have withdrawn from Canada due to the challenging regulatory environment.

Response to Regulatory Changes

In a blog post published on Tuesday, Bybit emphasized its commitment to operating within the confines of Canadian rules and regulations. The exchange stated, “It has always been Bybit’s primary objective to operate our business in compliance with all relevant rules and regulations in Canada.” However, due to recent regulatory developments, Bybit has made the difficult but necessary decision to pause the availability of its products and services in the country.

Effective immediately, new account openings will no longer be accepted by Bybit in Canada. Existing customers, however, will have until July 31 to make new deposits and enter into new contracts. Following the closing date, customers will be able to withdraw funds or reduce their positions.


Regulatory Hurdles for Crypto Exchanges

Bybit’s decision to exit the Canadian market comes amid a challenging regulatory landscape, with other major exchanges such as Binance also discontinuing their operations in the country. In February, the Canadian Securities Administrators (CSA) issued new guidance for crypto companies, mandating that crypto asset trading platforms obtain approval, which includes undergoing various due diligence checks. On the other hand, some exchanges like Coinbase have chosen to stay committed to their operations in Canada. Coinbase has even praised Canada’s new approach for providing clear rules and guidance for the crypto industry.

Bybit, which recently established its global headquarters in Dubai, is now focusing on other markets outside Canada. The exchange continues to serve customers in different regions and is dedicated to ensuring compliance with the respective regulatory frameworks.

The exit of Bybit from the Canadian market underscores the challenges faced by cryptocurrency exchanges in navigating evolving regulatory landscapes. As governments worldwide seek to establish clear guidelines for the crypto industry, exchanges must adapt to changing regulations to ensure compliance and provide a secure trading environment for their users.