Crypto exchange Bybit announces exit from Canadian market

• Bybit will not accept new account applications from Canadian residents and nationals as from 31 May.
• Existing customers have until 31 July and thereafter they will only be able to withdraw funds.
• Any open positions after 30 September 2023 will be liquidated, the exchange said in a notice.

Cryptocurrency exchange Bybit is exiting the Canadian market, according to a notice the company published on Tuesday, 30 May.

The exchange noted that the decision to exit Canada was reached as a result of recent regulatory developments. Bybit said that while it had always been its “primary objective” to comply with all local rules and regulations, the decision to leave was necessary – even if difficult.

Bybit is thus pausing its activities and products in the Canadian market as from 31 May 2023.

No new accounts for Canadian residents

Beginning Wednesday, 31 May, Bybit will no longer accept account opening applications from new users ascertained to be from Canada. The restriction applies to all existing Canadian nationals, the exchange noted.

Existing Canadian customers will still be able to use the platform until 31 July, when they will also be restricted from making new deposits or entering into new contracts. Bybit will also not allow them to increase existing positions across all products and services effective on that date. However, customers will still be able to withdraw funds or reduce existing positions.

Overall, Canadian customers have until 30 September, 2023, 8am UTC to wind down positions. Any margin or derivatives positions still open after this date will be liquidated, with funds made available for withdrawal.

Several crypto firms have exited Canada

Bybit’s exit from Canada comes a day after the exchange announced it had received “in-principle” approval to expand its operations into Kazakhstan.

Notably, the news also come a few weeks after Binance, the world’s largest cryptocurrency exchange by trading volume, exited Canada. As reported, Binance cited new developments around crypto guidelines from Canadian regulators as the reason for its decision.

Since February, when the Canadian Securities Adminstration (CSA) formalised new requirements for crypto exchange operators, several providers have exited. As CoinJournal also highlighted here, these include OKX, dYdX and Paxos.