Singapore-based crypto exchange Bybit announced that it would be halting its operations in Canada, effective May 31, due to recent regulatory shifts in the nation. This move echoes those of several other exchanges that have also withdrawn from the country. Bybit emphasized its commitment to regulatory compliance in Canada, stating in a Tuesday blog post, “It has always been Bybit’s utmost goal to conduct our operations in line with all pertinent regulations in Canada. In light of recent regulatory evolution, we have made the tough yet necessary decision to suspend our product and service offerings.”
Impact on Existing and New Customers
From May 31, new account registrations will no longer be accepted. However, the existing customers have been given a grace period until July 31 to initiate new deposits and contracts. After this date, customers will have the option to withdraw or diminish their positions, as per the company’s notice.
Canadian Regulatory Landscape: Binance and Bybit Exit
Bybit, which recently established its global headquarters in Dubai, follows the footsteps of Binance and other crypto exchanges that have ceased operations in Canada. This retreat comes amid the country’s evolving regulatory landscape, which presented new directives for cryptocurrency firms in February. These instructions necessitate crypto trading platforms to secure approval from the Canadian Securities Administrators (CSA), which involves passing numerous due diligence checks.
Crypto Exchanges Staying Put: The Case of Coinbase
In contrast, some crypto exchanges, such as Coinbase, have affirmed their commitment to their Canadian operations and are even expanding their footprint in the region. Coinbase has commended Canada’s new approach, applauding the clarity provided by the new rules.
