Bybit Joins Binance in Exiting Canadian Market over Regulatory Concerns
Bybit has announced its decision to halt operations in Canada due to the country’s challenging regulatory environment. The move comes as the Canadian Securities Administrators (CSA) introduced new guidelines in February, requiring crypto asset trading platforms to obtain approval and pass due diligence checks. Bybit’s exit from the Canadian market follows in the footsteps of Binance, another major crypto exchange that recently ceased its operations in the country.
In a statement released on their website, Bybit expressed its commitment to operating in compliance with all relevant rules and regulations in Canada. However, given the recent regulatory developments, the exchange deemed it necessary to pause the availability of its products and services in Canada, a decision the company described as both difficult and essential.
The changes will affect both new and existing users on the Bybit platform. Starting from May 31, 2023, 8AM UTC, Bybit will no longer accept account opening applications from identified Canadian residents and existing Canadian nationals. As for existing users, effective from July 31, 2023, 8AM UTC, Canadian customers will no longer be able to make new deposits, enter into new contracts, or increase their existing positions across all products and services. However, they will still be allowed to withdraw funds or reduce their positions until September 30, 2023, 8AM UTC.
Bybit has provided a comprehensive list of the affected products and their respective post-announcement impacts. These include spot trading, margin trading, leverage tokens, crypto loans, launchpad, futures contracts, options, and various earning and fiat-related services.
Bybit has set a deadline of September 30, 2023, 8AM UTC, for Canadian customers to wind down and manage their positions. Failure to take action will result in the automatic liquidation of open positions in margin products and derivative contracts, with the liquidated funds becoming available for withdrawal.
The decision to exit the Canadian market reflects the challenges faced by crypto exchanges in navigating evolving regulatory landscapes. With the global adoption of cryptocurrencies on the rise, governments around the world are working to establish frameworks that ensure investor protection and mitigate potential risks associated with the industry.
Bybit remains committed to providing a safe and sustainable trading experience for crypto enthusiasts while adhering to necessary safeguards. The exchange expressed its apologies for any inconvenience caused and expressed gratitude for the continued support from its users.
As the crypto market continues to evolve, it is crucial for users and investors to stay informed about regulatory developments and adjust their strategies accordingly. Bybit’s exit from the Canadian market serves as a reminder of the importance of understanding the regulatory landscape and complying with the rules and guidelines set forth by authorities.
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