Crypto exchange Bybit has announced its decision to “pause” its Canadian operations, citing recent regulatory changes.
The platform is the latest in a string of crypto firms to pull out of the country, following similar moves from Binance earlier this month and OKX in March.
Canada has cracked down on the crypto sector in recent months, introducing a pre-registration process and banning leveraged trading.
“It has always been Bybit's primary objective to operate our business in compliance with all relevant rules and regulations in Canada,” Bybit said in a statement. “In light of recent regulatory development, Bybit has made the difficult but necessary decision to pause the availability of our products and services.”
Canada to Prohibit Crypto Firms From Offering Leveraged Trading to Citizens
Crypto platforms applying for registration in Canada will have to agree to tighter rules in the country, including a ban on margin and leverage trading. Firms will also have to hold the assets of Canadian clients separately from their proprietary business, according to expanded terms outlined by the Canadian Securities Administrators (CSA) on Monday. Crypto businesses were told in August that they needed to submit a pre-registration undertaking (PRU) to operate while pursuing full registration....
Bybit’s existing Canadian users will no longer be able to make new deposits or enter new contracts on the platform from July 31, though they will still be able to withdraw funds, the company said.
Bybit will also no longer accept any new registrations from Canadian residents and nationals.
Those affected have been urged to wind down their positions by September 30. Any positions on margin products and derivative contracts left open by that date will be liquidated and made available for withdrawal.
Bybit exits stage left
It is not the first time Bybit has pulled out of a market. In 2021, it stopped serving UK clients to comply with a ban on crypto derivatives. Users in the U.S. are also blocked from the platform.
The business also halted derivatives trading in Brazil in September last year, after the country’s securities regulator imposed a ban on the site.
The company, founded in 2018 and headquartered in Dubai, was among the many firms forced to cut staff at the end of last year amid the effects of crypto winter.
