Bybit, a cryptocurrency exchange, has announced that it will be halting all services and products being offered in Canada until further notice due to regulatory developments in the country. Canadian nationals and residents of the country will no longer be able to open new accounts with the exchange starting May 31.
Existing Customers Can Continue to Use Bybit Services
Existing customers can continue to use Bybit services and products until July 31, at which point the exchange will end support for all its services in the country. Although customers will not be able to increase their positions after the deadline, they will still have access to their funds and will be able to withdraw them or reduce their position. Bybit has stated that Canadian customers will have until September 30 to wind down their positions, and failure to do so will result in the automatic liquidation of any and all open positions in margin products and derivative contracts.
Canada’s New Regulations for the Crypto Industry
Canada moved to impose new regulations for the crypto industry in February and gave exchanges an ultimatum to comply or leave. Under the new rules, exchanges are not allowed to offer any form of leverage, including margin or credit. Additionally, exchanges are prohibited from allowing the purchase or deposit of stablecoins without prior written consent from regulators. The de-facto ban on stablecoins and leverage services is the primary driver behind the exodus of exchanges from the country.
Other Exchanges Exiting the Canadian Market
Bybit is the latest exchange to exit the Canadian market due to the new regulations. Binance announced a similar halting of services for Canadian customers earlier in May and said the regulatory landscape meant operating in the country was no longer “tenable” for the exchange. OKX announced it would temporarily cease operations in the Canadian market in March. A month later, in April, dydx and Paxos also announced that they would no longer offer services in Canada. All three of them cited the new regulatory guidance as the prime reason behind their decision.
Compliance vs. Restriction
While some exchanges are taking the compliance route and have welcomed more regulation for the crypto sector, even if it is restrictive, others are choosing to exit the Canadian market. Coinbase and Kraken have both reaffirmed their intent to continue operating in Canada and said they would comply with the new regulatory framework despite its drawbacks.
Bybit has halted all services and products being offered in Canada due to the regulatory developments in the country. The new regulations prohibit exchanges from offering any form of leverage and from allowing the purchase or deposit of stablecoins without prior written consent from regulators. Bybit is the latest exchange to exit the Canadian market, with others such as Binance, OKX, dydx, and Paxos also choosing to leave due to the new regulatory guidance. However, some exchanges such as Coinbase and Kraken are choosing to comply with the new regulations and continue operating in Canada despite the drawbacks.