Yet another crypto exchange is abandoning Canada.
Bybit, a popular cryptocurrency exchange, has declared that it will suspend its services to Canadian residents due to recent shifts in the nation's regulatory landscape.
This surprising decision comes as the crypto exchange plans to enter new markets and enhance user security.
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In a blog post dated May 30th, Bybit stated that it would cease accepting new account applications from Canadian users starting May 31st.
The crypto exchange's current Canadian users will have until July 31st to deposit funds and "increase any of their existing positions." Services will gradually phase out following this date, and all remaining positions will be liquidated after September 30th.
The Dubai-based crypto exchange did not elaborate on the specific reasons for its exit from the Canadian market, merely citing "recent regulatory development" in Canada. In the announcement, the company stated:
As the adoption of crypto continues to grow, our mission is to provide a safer and sustainable trading experience to all crypto enthusiasts while maintaining necessary safeguards.
This announcement follows the Ontario Securities Commission's financial penalties imposed against Bybit in June 2022. Bybit had also previously announced its plans to implement compulsory Know Your Customer (KYC) requirements for all users beginning May 2023.
Meanwhile, Bybit is working to extend its reach to other markets. The company recently announced that it received "in-principle" approval from regulators in Kazakhstan on May 29th.
Bybit's decision to withdraw from Canada isn't unique in the crypto industry. In fact, several crypto firms have recently announced their exit from the country due to regulatory concerns.
In April, decentralized exchange dYdX stated its intention to gradually end its services for Canadian users due to the country's "regulatory climate." Similarly, major crypto exchange Binance announced its proactive withdrawal from Canada in May, citing regulations by the Canadian Securities Administrators.
Bybit's decision to halt its services in Canada due to regulatory changes underlines the significant impact of regulation on the operations of cryptocurrency firms. As regulatory landscapes continue to evolve, crypto exchanges must navigate these changes carefully while maintaining their commitment to providing secure and compliant services.
