Cryptocurrency exchange Bybit has announced it will be pausing its products and services to residents and nationals of Canada following certain developments in the regulatory space.
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In a May 30 blog post, Bybit said it will not accept account opening applications from Canadians starting on May 31. Current users of the crypto exchange will have until July 31 to make deposits and “increase any of their existing positions” before these services are phased out, with other positions liquidated after Sept. 30.
Bybit did not offer any explanation for the market exit other than “recent regulatory development” in Canada. The Ontario Securities Commission issued financial penalties against the exchange in June 2022, and Bybit said it planned to introduce mandatory Know Your Customer requirements for all users starting in May 2023.
“As the adoption of crypto continues to grow, our mission is to provide safer and sustainable trading experience to all crypto enthusiasts while maintaining necessary safeguards.” said Bybit.
Headquartered in Dubai, Bybit’s plans to exit Canada came amid the exchange expanding into new markets. On May 29, the company said it had received “in-principle” approval from regulators in Kazakhstan. This move followed Bybit introducing cryptocurrency lending services.
Bybit was the latest crypto firm to announce it would be pulling out of Canada in light of regulations. In April, decentralized exchange dYdX announced a “winding down” of its services for Canadian users in response to the country’s “regulatory climate.” Major crypto exchange Binance said in May it was “proactively withdrawing” from Canada, citing rules by the Canadian Securities Administrators.