Bybit Becomes Latest Exchange to Exit Canada
- Bybit is the latest exchange following Binance and OKX to announce its departure from the Canadian market due to “recent regulatory development”.
- Canadian nationals will no longer be able to open new accounts starting Wednesday, while existing users have until 30 September to withdraw their assets from the platform.
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Bybit has become the latest cryptocurrency exchange to begin its withdrawal from the Canadian market following the country’s regulatory development, the company said in a blog post on 30 May.
According to the announcement, the crypto exchange decided to pause the availability of its products and services due to the “recent regulatory development” in Canada, and starting Wednesday Canadian residents and nationals will no longer be able to submit new account opening applications. The company wrote in its blog post:
“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.”
Existing Canadian users will be able to make deposits and increase their existing positions on the platform until 31 July, after which they will only have the option to reduce their positions or withdraw funds. Customers have been advised to wind down and manage their positions by 30 September, after which their assets will be automatically liquidated and the funds made available for withdrawal.
Bybit is not the first crypto company to begin its exit from Canada after the country mandated that all crypto exchanges had to sign a new legally binding undertaking in February. OKX announced its exit from the country back in March, while major crypto exchange Binance made the same move earlier this month.
- The company said it will be suspending its crypto-backed debit card service in the Middle East on 25 August, and in Latin America by 21 September.
- Although no reason was given for the decision, the company noted that “less than 1% of users” in those regions will be affected by the change.
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- A spokesperson said the change was due to the “changing market and user needs”, and that Binance will now be refocusing its resources on its main products and long-term goals.
- Launched in March 2022, Binance Connect helped crypto businesses connect with the traditional finance system, and supported 50 cryptocurrencies and networks such as Visa and Mastercard.
- The U.K. Financial Conduct Authority continues its crackdown on crypto ATMs in the country, and has disrupted a total of 26 machines since the start of the year.
- The regulator warned the public back in March 2022 that all crypto ATMs in the country were operating illegally, and issued a “shut down or face further action” order.