Bybit Joins Binance in Exiting Canadian Cryptocurrency Market – What Happened?

Image source: Capital Network

Cryptocurrency exchange Bybit has announced plans to exit Canada, citing increased regulatory scrutiny in the country.

“In light of recent regulatory developments, Bybit has made the difficult but necessary decision to suspend the availability of our products and services,” the cryptocurrency platform said in a blog post on Tuesday.

Bybut added that starting Wednesday, May 31, Canadian users will not be able to open new accounts, while existing Canadian users will not be able to deposit or trade after July 31.

It advises all users in the jurisdiction to close their positions by September 30, or they will be liquidated.

The platform is the latest in a string of cryptocurrency firms to exit the country, following similar moves by other major exchanges including Binance and OKX.

Earlier this month, the world’s largest cryptocurrency exchange said it was exiting the country due to new guidance on stablecoins and restrictions on investors.

Binance said at the time: “We delayed this decision for as long as possible to explore other reasonable avenues to protect our Canadian users, but it was clear there wasn’t any.”

Likewise, OKX revealed in March that it was exiting the Canadian market, blaming new regulations for the exit.

Other notable exits from Canada include Paxos, dYdX, and Bittrex.

Canada takes tough stance on cryptocurrency firms

In February 2023, the Canadian Securities Authority introduced new regulations requiring cryptocurrency companies to commit to protecting investors through “enhanced pre-registration commitments.”

Under the CSA’s “Pre-registration Commitment,” companies must agree to segregate cryptocurrency custody, and they must have a Chief Compliance Officer.

They also have to take out leveraged trading, not allowing users to trade or hold stablecoins.

However, not all exchanges have exited the country, with some focusing on success in the regulated Canadian market.

Coinbase reportedly announced last month that it had appointed a former Shopify executive as its new country director in Canada as part of its strategy to adapt to the country’s changing regulatory environment.

The largest U.S. cryptocurrency exchange said Lucas brings a wealth of experience accumulating from his time at Shopify and leading Canadian financial institutions, and could also help the exchange with its planned expansion.

Additionally, Coinbase says it is dedicating significant resources to Canadian homegrown innovation. The company said it has hired more than 200 engineers in the country to expand the technology center. It added:

“In addition, our global leadership team will travel to Canada frequently to engage with regulators, partners and the community to better understand the Canadian market and its unique needs.”

Coinbase also revealed that it has signed an Enhanced Pre-Registration Undertaking (PRU) in Canada, which is required by members of the Canadian Securities Authority (CSA) as part of a membership that allows unregistered crypto asset trading platforms (CTPs) to continue operating prerequisites.

Source of information: Compiled from CRYPTONEWS by 0x Information.Copyright belongs to the author, without permission, may not be reproduced

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