Bybit, a cryptocurrency exchange, has decided to exit Canada due to recent regulatory developments.
In a blog post on Tuesday, Bybit informed its Canadian users that starting from Wednesday, May 31, they would no longer be able to open accounts on the platform. Existing users will lose the ability to deposit funds or trade after July 31, and they are advised to close their positions by September 30 to avoid liquidation.
Bybit’s departure follows several other crypto exchanges, including Binance, OKX, Paxos, dYdX, and Bittrex, which have also left Canada due to regulatory concerns.
Following the Canadian Securities Administrators’ request for crypto trading platforms to register with them or cease operations, several exchanges have chosen to exit Canada.
The CSA’s requirements include implementing segregation in crypto custody, appointing a chief compliance officer, eliminating leveraged trading, and prohibiting the trading or holding of stablecoins. Many unregistered firms opted to leave the country rather than comply with these obligations, which had a deadline of March 23.
However, not all exchanges have taken the same approach, as some are determined to thrive in a regulated Canadian market.
The largest cryptocurrency exchange in the United States still seeks a partnership with Canada, aiming to tap into the country’s projected $1.42 billion crypto revenue in 2023 (according to Statista). Coinbase Canada has signed a pre-registration undertaking (PRU) on March 24, demonstrating its commitment to collaborating with Canadian regulators in establishing a robust regulatory framework.
In a statement released on March 30, Coinbase expressed appreciation for the Canadian securities regulators’ efforts in bringing clarity to the industry and emphasized their willingness to work together to ensure consumer protection while fostering innovation.
Coinbase has continued to express its admiration for Canadian regulators, highlighting the clarity and engagement they provide compared to the regulatory environment in the United States. Nana Murugesan, Coinbase’s Vice President of International and Business Development. Murugesan explained that regulators can either engage with the industry or enforce regulations strictly, and Canada follows the former approach, which Coinbase appreciates.
Also Read This Related: Bybit Receives Pre-Approval as Crypto Custody Service Provider in Kazakhstan
Similar to Coinbase, Kraken also decided not to leave the Canadian market behind. On March 30, Kraken announced that it had submitted a pre-registration undertaking (PRU) with regulators. The press release referred to a survey conducted by the Ontario Securities Commission (OSC) in October 2022, which revealed that 31% of Canadians have plans to purchase cryptocurrency assets within the next year.
However, the survey also indicated that nearly half of the respondents had no intentions of buying any form of cryptocurrency in the coming 12 months. Another US-based exchange, Gemini, has also filed a PRU with the Canadian Securities Administrators (CSA).
BitBuy, a prominent Canadian cryptocurrency exchange, holds a unique position as it was established in 2016 and became the country’s first regulated crypto marketplace and restricted dealer. Being a homegrown exchange, BitBuy was brought under the regulatory umbrella earlier than Coinbase, Kraken, and Gemini, which are US-based platforms.
Shakepay, a cryptocurrency exchange based in Montreal, Canada, filed a pre-registration undertaking (PRU) with the Canadian Securities Administrators (CSA) on March 24, joining several other firms on the list. The Ontario Securities Commission (OSC) has approved Shakepay, along with other companies like Fidelity Digital Assets, Coinsquare, and Newton Crypto, to offer crypto products to residents of Ontario.
Shakepay announced on Tuesday through a tweet that it has now become a regulated exchange in Canada.
Big news, Shakepay is now regulated as a Restricted Dealer in Canada 🇨🇦!
In addition, Shakepay is the first Quebec-based Crypto Asset Trading Platform to register.
We’re committed to serving the Canadian market responsibly, and this registration is proof of that commitment.
— Shakepay — Buy Bitcoin 🇨🇦 (@shakepay) May 30, 2023
Important: This article is intended solely for informational purposes. It should not be considered or relied upon as legal, tax, investment, financial, or any other form of advice.
Join Cryptos Headlines Community: https://linktr.ee/cryptosheadlines.com