Following in Binance’s footsteps, Bybit leaves Canada

Visit regulatory changes at Canada displease at exchanges. After Binance, it’s the turn of Bybit to announce its withdrawal from canadian crypto market.

While crypto players regularly call on US authorities to clarify regulation, they are not necessarily ready to subscribe to it by complying with the latest rules.

At Canadaexchanges choose to pack their bags. This was the policy formalized by the industry’s number one two weeks earlier. For Binance, leaving is preferable to applying the rules laid down by local regulators. And Bybit follows suit.

Bybit withdrawal with immediate effect

In light of recent regulatory developments, Bybit has taken the difficult but necessary decision to suspend the availability of its products and services,” the company writes on its blog.

“The primary objective of Bybit has always been to conduct its business in compliance with all the rules and regulations in force in the country. Canada “she assures us. And the measure takes effect today, May 31, for new users.

Existing customers of the trading platform, meanwhile, will benefit from a stay of execution. As of July 31, Bybit services will no longer be available to them for new operations.

New deposits or contracts, as well as increases in existing positions for all products and services, will be blocked. However, customers will still be able to withdraw or reduce their positions.

Liquidation announced for September 30

A second deadline has been set for Bybit’s departure from Canada. Canadian customers have until September 30, 2023 to liquidate and manage their positions. Failing this, the platform itself will trigger the transactions.

Open positions in all margin products and derivative contracts, including the following products listed below, will be liquidated and liquidated funds will be available for withdrawals,” the exchange states.

The May departures of two key market players are therefore the consequence of a regulatory turn of screw decided by the authorities. The springtime of crypto regulation announced by the Banque de France began this winter at Canada.

The Canadian government has imposed new requirements on companies operating in the country. In particular, players are required to separate their assets from those of their customers, a practice that is widespread in the industry.

Stablecoin regulation, the last straw

This policy was decided in the wake of the FTX bankruptcy, early evidence of which suggested the regular use of its users’ funds by the exchange. The position of the Canadian SEC has further widened the gap between suppliers and authorities.

For the Canadian Securities Administrators, stablecoins could be akin to securities or derivatives. The result: a ban on margin and leveraged trading for Canadian clients.

The new stablecoin guidelines and investor limits set for crypto-currency exchanges mean that the Canadian market is no longer tenable for Binance at this time,” reacted the global giant.

Based in Dubai, Bybit now wishes to create an annex in Hong Kong.

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