Popular cryptocurrency exchange Bybit announced it is exiting the Canadian market following recent regulatory developments in the country as the reason behind its decision.
Starting May 31, new account openings will not be available, while existing customers have until July 31 to make further deposits and enter into new contracts. The company also promised that long-time users will be able to withdraw or reduce their holdings after the closing date.
Bybit's decision to leave Canada comes after the Canadian Securities Administrator (CSA) issued new guidelines for the crypto market, which forced digital asset trading platforms to seek approval from the CSA.
“It has always been Bybit's primary objective to operate our business in compliance with all relevant rules and regulations in Canada. Based on recent regulatory developments, Bybit has had to make the difficult decision to discontinue the availability of our products and services," Bybit said in a statement.
Current regulatory rules in Canada have become increasingly challenging for some crypto exchanges to operate, causing several large exchanges including Binance and others to also pull out of the country.
On the other hand, Coinbase, the largest crypto exchange in the U.S. is growing in Canada. In March, the company hired more than 200 engineers. The exchange also noted that its global leadership team will regularly interact with regulators, partners and communities in Canada to better understand the market and its needs.
The retreat of several crypto exchanges in the Canadian market reflects the uncertainty surrounding the country's regulatory regime. Bybit became the latest cryptocurrency exchange to withdraw from the Canadian market.
