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Crypto Exchange Bybit Announces Exit from Canadian Market Amid Regulatory Changes

Regulatory Shifts Prompt Bybit's Strategic Withdrawal from Canadian Crypto Market

Bybit Joins Binance in Leaving Canadian Market

Crypto exchange Bybit is the latest to announce its departure from the Canadian market due to recent changes in the country’s regulatory landscape. This move echoes that of fellow exchange Binance, which recently also pulled out of Canada. However, other major exchanges such as Coinbase, Kraken, and Gemini continue to maintain their operations in the country.

Bybit’s Compliance-Driven Decision to Exit Canada

In a blog post released on Tuesday, Bybit explained its decision to withdraw from Canada. It stated, “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’s Timetable for Exiting the Canadian Market

Effective from May 31, Bybit will stop accepting new account openings. Existing customers will have until July 31 to make new deposits and enter into new contracts. Beyond this date, customers will only be able to withdraw or reduce their positions on the exchange.

Tough Regulatory Environment Forces Crypto Exchanges’ Retreat

Bybit’s move to halt its operations in Canada comes in the wake of increasingly stringent regulations in the country. In February, new guidelines for crypto companies were unveiled, requiring crypto asset trading platforms to seek approval from the Canadian Securities Administrators (CSA). To obtain this approval, the exchanges must pass various due diligence checks, a challenge that has led some crypto exchanges to reassess their presence in the Canadian market.

Dubai Becomes Bybit’s New Global Headquarters

As it navigates regulatory challenges in various parts of the world, Bybit recently set up its global headquarters in Dubai. The firm’s decision to withdraw from Canada indicates its preference to operate in jurisdictions with clearer and more supportive regulatory environments for the crypto industry. As regulatory landscapes continue to evolve globally, crypto exchanges may continue to adjust their operations to ensure compliance and maintain a favorable business environment.

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