- Bybit has followed Binance out of Canada following a change to crypto regulations last year
- Canada banned margin trading on crypto exchanges in December 2022
- Binance quit the country two weeks ago citing the same changes
Cryptocurrency exchange Bybit has followed in the footsteps of Binance and quit Canada citing recent regulatory changes that have taken place in the country. Effective immediately, individuals will no longer be able to open new accounts on the platform although existing customers will be allowed to use the exchange until July 31. Bybit has assured users that they will have the opportunity to withdraw funds or adjust their positions even after the official closure date. Binance quit the country two weeks ago, with both exchanges citing regulatory changes six months ago that banned margin trading.
Margin Trading Ban Hits Bybit
Canada banned margin trading for amateur crypto investors last December, a sign that the Canadian Securities Administrators (CSA) was “strengthening its approach to oversight of crypto trading platforms” by preventing them from offering leverage and margin trading facilities and a requirement to keep customers’ funds with an “appropriate custodian”.
Binance didn’t like the sound of those new regulations and announced on May 12 that it was quitting the country, and now it seems that Bybit has decided that it, too, cannot comply with the new regulations, saying 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.”
QuadrigaCX and FTX Collapses Prompt Action
Canada’s reputation took a battering when it was found to be asleep at the wheel when QuadrigaCX imploded in 2018, but it was the collapse of FTX which really provoked action; one of the rules is a requirement that customers’ funds be kept with an “appropriate custodian” and not commingled.