On Tuesday, May 30, cryptocurrency exchange Bybit announced that it is exiting the Canadian market. The decision to leave Canada was reportedly made in response to recent regulatory developments. Bybit had always aimed to comply with local rules and regulations, but the decision to leave was deemed necessary. The company offered a notice in which it stated its intention to pause activities and products in the Canadian market as of May 31, 2023. Existing Canadian customers can still use the platform until July 31, but they will be restricted from making new deposits or entering new contracts as of that date. Bybit will also not allow them to increase existing positions across all products and services.
Furthermore, if customers have not wound down any positions by September 30, 2023, 8am UTC, any margin or derivatives positions still open after this date will be liquidated. Their funds will be made available for withdrawal. Bybit will not accept any new account applications from Canadian residents and nationals as of May 31.
Bybit’s exit from Canada comes after the exchange received “in-principle” approval to expand its operations into Kazakhstan. Furthermore, Binance, the world’s largest cryptocurrency exchange by trading volume, recently exited Canada apparently due to new guidelines around crypto regulations by Canadian regulators. In fact, since February, when the Canadian Securities Administration (CSA) formalized new requirements for crypto exchange operators, several providers, including OKX, dYdX, and Paxos, have exited the Canadian market.
In conclusion, despite Bybit’s compliance efforts, it has concluded that it cannot continue to offer its services in Canada. Canadian customers will need to wind down their positions before September 30, 2023, or they will be liquidated. It remains to be seen whether other crypto operators will also exit Canada as a result of the new regulatory developments.