Bybit and Binance Exit Canadian Market Amid Regulations
Bybit, a popular cryptocurrency exchange, has recently announced its decision to exit the Canadian market due to the country’s new regulatory requirements for the crypto industry. The exchange will implement this exit strategy in multiple phases, with the first phase commencing today, Wednesday.
Bybit expressed its commitment to operating in compliance with all relevant rules and regulations in Canada, making the difficult but necessary choice to temporarily halt the availability of its products and services in light of recent regulatory developments.
Starting May 31, Bybit will no longer accept new users identified as Canadian residents or existing Canadian nationals. Furthermore, most services, including fiat deposits and withdrawals, will be terminated for existing Canadian customers by July 31. Any remaining open positions will be liquidated by September 30.
Bybit emphasized that Canadian customers affected by these measures must take action by September 30, 2023, at 8 AM UTC to wind down and manage their positions. Failure to do so will result in the automatic liquidation of open positions in margin products and derivative contracts. The funds from these liquidations will then be available for withdrawal.
Essentially, Bybit’s exit from the Canadian market is a response to the regulatory requirements imposed by the country. The exchange will gradually phase out its services, affecting new and existing Canadian customers. It is crucial for affected customers to take the necessary steps to manage their positions before the specified deadline to avoid liquidation.
Regulations Hit Differently
The CSA recently mandated that all cryptocurrency exchanges must register and implement rigorous due diligence processes. Bybit’s decision to exit follows the footsteps of Binance, the largest exchange in terms of trading volume, which also closed its operations in Canada due to strict requirements related to stablecoins and investor limits.
The CSA classified stablecoins as securities and/or derivatives, thereby prohibiting exchanges from offering services involving stablecoins. Other prominent exchanges like Paxos and OKX have also chosen to exit the Canadian market.
However, some well-established cryptocurrency exchanges, including Coinbase, Kraken, and Gemini, have taken a different approach and decided to strengthen their presence in Canada by seeking new registrations. Coinbase, currently engaged in an ongoing legal battle with regulators in the United States over crypto regulations, commended Canada’s approach to the industry.
