Bybit Joins List of Crypto Firms Exiting Canada Amid Regulatory Changes
Major crypto derivatives exchange, Bybit, announced plans to cease offering its products and services to customers in Canada. The company’s exit is the latest development in a series of departures by crypto firms due to recent regulatory changes in the Canadian market.
Bybit’s Exit Announcement
In a blog post, Bybit informed new and existing users that it would no longer be operational in Canada. The decision comes “in light of recent regulatory development.”
In February 2023, Canadian regulators introduced new rules requiring crypto firms to make commitments to protect investors through an “enhanced pre-registration undertaking.” Companies were expected to provide the undertaking within 30 days or cease operating in Canada.
Bybit acknowledged the changes, stating, “As the adoption of crypto continues to grow, our mission is to provide safer and sustainable trading experience to all crypto enthusiasts while maintaining necessary safeguards. We apologize for any inconvenience this may cause, and appreciate your continued support.”
Implications for Bybit Users
Bybit has announced that it would stop accepting new users from May 31. Moreover, existing customers would no longer be able to make deposits, increase their positions, or enter new contracts from July 31, except for withdrawing or reducing their positions. Furthermore, by September 30, customers are advised to wind down their positions to avoid liquidation.
Trend of Crypto Firms Leaving Canada
Bybit’s exit from Canada is part of a growing trend of crypto companies leaving the Canadian market for similar reasons. Firms such as Binance, dYdX, OKX, and Paxos have previously announced plans to stop servicing users in Canada.
Notably, Bybit has received in-principle approval from regulators in Kazakhstan. Also, the Dubai-headquartered platform recently launched a crypto lending service for its users.
As Canada tightens its crypto regulations, it remains to be seen how many more companies will follow suit, leaving the Canadian market.