Popular cryptocurrency exchange Bybit announced it will be exiting the Canadian market, citing recent regulatory developments in the country as the reason behind its decision. The move follows similar decisions made by other exchanges that ceased operations in the North American nation.
Starting May 31, new account openings will be unavailable, while existing customers will have until July 31 to make further deposits and enter into new contracts. The company also promised that old users would be able to withdraw or reduce their positions after the closing date.
Bybit’s decision to leave Canada comes after the Canadian Securities Administrators (CSA) issued new guidance for crypto entities, which forces digital asset trading platforms to obtain approval from the CSA. The new regulations include passing various due diligence checks.
“It has always been Bybit’s primary objective to operate our business in compliance with all relevant rules and regulations in Canada. In light of recent regulatory development, Bybit has made the difficult but necessary decision to pause the availability of our products and services,” Bybit said in a statement.
The current regulatory environment in Canada has become increasingly challenging for some crypto exchanges to navigate, causing several high-profile exits, including Binance and others who have also pulled out of the country.
In contrast, Coinbase, the largest crypto exchange in the U.S., is expanding in Canada. In March, the company hired over 200 engineers in the country to support its global product portfolio. The exchange also stated that its global leadership team would frequently engage with regulators, partners, and the community in Canada to better understand the market and its unique needs.
The diverging strategies of crypto exchanges toward the Canadian market reflect the uncertainty surrounding the regulatory regime in the country. Bybit’s exit, along with the withdrawal of Binance, signals a setback for the Canadian crypto industry.
However, Coinbase’s expansion highlights the confidence of some firms in the Canadian market, despite regulatory challenges. Bybit becomes the latest cryptocurrency exchange to pull out of the Canadian market.