Bybit exchange exits Canadian market due to regulations, while Binance and Coinbase face different situations.

The Bybit exchange announcement states that, in compliance with Canadian regulatory requirements, as of May 31st, they will no longer accept Canadian residents or existing Canadian nationals to open accounts. After the end of July this year, Canadian users will only be able to withdraw funds and close positions. In response to the regulatory requirements in Canada, Binance recently announced its exit from the market, while on the other hand, the major U.S. exchange Coinbase expressed support for regulatory measures.

Learn more about the new regulations for Canadian controlled platform coins

Bybit Withdraws from Canadian Market

Bybit has stated that it has always aimed to operate in accordance with all relevant regulations in Canada. However, considering recent regulatory developments, Bybit has made the difficult but necessary decision to temporarily suspend the offering of its products and services.

For New Users:

Starting from 8:00 AM UTC on May 31, 2023, Bybit will no longer accept account opening applications from individuals confirmed to be residents of Canada or existing Canadian citizens (Canadian customers).

For Existing Users:

Starting from 8:00 AM UTC on July 31, 2023, Canadian customers will not be able to make any new deposits, open new contracts, or add to any existing positions involving all products and services. However, they will still be able to withdraw funds or reduce positions. Canadian customers affected by these measures should take action to close and manage their positions by 8:00 AM UTC on September 30, 2023. Otherwise, any open positions in margin products and derivative contracts, including those listed below, will be liquidated, and liquidation funds will be available for withdrawal.

New Regulatory Measures in Canada

The cryptocurrency regulation notice issued by the Canadian Securities Administrators in February includes:

• Exchanges are required to segregate custody of user assets

• Prohibition of offering margin, credit, or any form of leveraged trading to any Canadian users

• Prohibition of allowing users to trade, deposit, or withdraw value-reference cryptocurrencies, stablecoins, and proprietary tokens without CSA approval

Binance Withdraws from Canadian Market

In mid-May, Binance stated: "Unfortunately, Binance will proactively withdraw from the Canadian market along with other well-known cryptocurrency companies." "While we disagree with the new guidance, we hope to continue communicating with Canadian regulatory authorities to achieve a thoughtful and comprehensive regulatory framework," said the Binance team.

Coinbase Without Platform Coins Welcomes the Approach in Canada

In an interview with Nana Murugesan, Vice President of International and Business Development at Coinbase, she clearly expressed a preference for the approach in Canada.

"We see regulators taking two approaches: one is through engagement for regulation, and the other is through enforcement for regulation. The latter is difficult to comply with because you don't know what the rules are. But Canadian regulators are definitely the former, which is through engagement for regulation, and we like that."