Cryptocurrency exchange Bybit has made the decision to temporarily halt its services and products in Canada due to regulatory developments in the country. Starting from May 31, Canadian nationals and residents will no longer be able to open new accounts with Bybit. The exchange stated that this move is a result of recent regulatory developments and is a necessary step to comply with the changing landscape.
Existing customers will still be able to utilize Bybit’s services and products until July 31. However, after this date, support for all services in Canada will cease. Customers will not be able to increase their positions after the deadline, but they will retain access to their funds. They can withdraw their funds or reduce their positions as needed.
Bybit has set a deadline of September 30 for Canadian customers to wind down their positions. Failure to do so will lead to the automatic liquidation of any open positions in margin products and derivative contracts.
Bybit is just one of several cryptocurrency exchanges exiting the Canadian market in response to new regulations imposed in February. The country’s regulations prohibit exchanges from offering leverage services, including margin or credit. Additionally, exchanges are not allowed to facilitate the purchase or deposit of stablecoins without prior written consent from regulators. These restrictions on stablecoins and leverage services have been the primary factors driving the departure of exchanges from Canada.
Other exchanges that have recently announced their departure from the Canadian market include Binance, OKX, dydx, and Paxos. These exchanges have also cited the new regulatory guidance as the main reason for their decisions.
On the other hand, some exchanges, such as Coinbase and Kraken, have expressed their commitment to continuing operations in Canada and complying with the new regulatory framework, despite the limitations it may impose. These exchanges see the benefits of increased regulation for the cryptocurrency sector, even if it means operating under certain restrictions.