Cryptocurrency exchange Bybit has announced that it will temporarily suspend its products and services for residents and nationals of Canada following regulatory developments in Canada.
In a blog post, Bybit stated that it would no longer accept applications to open accounts from Canadians starting from May 31. Existing users of the platform will have until July 31 to make deposits and “increase any of their existing positions” before these services are gradually phased out. After September 30, any remaining positions will be liquidated.
Bybit did not provide specific details regarding the reasons for its market exit from Canada, only referring to “recent regulatory developments” in the country. In June 2022, the Ontario Securities Commission imposed financial penalties on the exchange, and Bybit had previously announced plans to implement mandatory Know Your Customer requirements for all users, starting in May 2023.
Bybit expressed its commitment to providing a safer and sustainable trading experience for all cryptocurrency enthusiasts while ensuring necessary safeguards, as the adoption of crypto continues to grow.
Bybit Looking to Expand to Other Markets
Based in Dubai, the exchange’s decision to exit the Canadian market coincided with its expansion into new territories. On May 29, the exchange revealed that it had received “in-principle” approval from regulators in Kazakhstan, following its introduction of cryptocurrency lending services. This entails fulfilling certain pre-conditions that will ultimately lead to permanent authorization to provide services to the local community once the application process is fully completed.
Bybit’s co-founder and CEO, Ben Zhou, expressed his belief in the promising potential of the Commonwealth of Independent States (CIS) as a region for the growth of the cryptocurrency industry. Zhou emphasized Bybit’s dedication to adhering to local regulations, particularly in light of the recent scrutiny the company faced from regulators in Japan for operating without proper registration.
Bybit joined a growing list of cryptocurrency companies withdrawing from Canada due to regulatory constraints. In April, decentralized exchange dYdX announced the gradual cessation of its services for Canadian users, citing the country’s “regulatory climate.” Similarly, major crypto exchange Binance stated in May that it was proactively withdrawing from Canada in response to regulations set by the Canadian Securities Administrators.
