• ByBit has announced that it will be exiting Canada and shutting down all services and products offered in the country.
• The decision was made due to the unfavorable regulatory environment prevailing in the country.
• This is part of a larger trend of cryptocurrency exchanges leaving Canada in response to new regulations imposed by the government.
ByBit Exits Canadian Markets
ByBit has become the latest cryptocurrency exchange to exit Canada and plans to shutter all services and products offered in the country. The announcement was made on the 30th of May. ByBit joins a growing list of cryptocurrency exchanges that are exiting Canada, citing an unfavorable regulatory environment.
Canadian Users Can’t Access Services or Products
ByBit added that Canadian users would be unable to access any services and products offered by the exchange. Furthermore, Canadian users will also be unable to open new accounts on the exchange starting from the 31st of May. The exchange announced the news in a blog post, stating, “It has always been Bybit’s primary objective to operate our business in compliance with all relevant rules and regulations in Canada.“
Existing Users Can’t Trade or Make Deposits
Additionally, existing users will not be able to trade or make deposits on the platform after the 31st of July, 2023. The exchange also asked its users in Canada to close out their positions by the 30th of September. Failure to wind down the positions would result in automatic liquidation of any and all positions held by users on both derivative contracts and margin products..
Unfavorable Regulatory Environment
Canada had imposed several new regulations on crypto industry which includes preventing exchanges from offering leverage such as margin or credit and barring them from allowing purchase/deposit of stablecoins without prior written consent from regulators – leading to de-facto ban on stablecoins in Canada – causing mass exodus of crypto exchanges from this market including ByBit’s recent announcement.
ByBit becomes latest entrant into growing list of cryptocurrencies choosing to leave Canadian markets due to unfavorable regulatory environment impeding their ability offer certain services/products & making it difficult for them remain profitable & compliant with local laws at same time resulting into their exit from this market