Bybit has made the difficult decision to stop providing its services and products in the Canadian market in response to recent developments in regulations. In a blog post on Tuesday, the company said that abiding by all relevant regulations in Canada had always been its primary goal.
The new requirements issued by the government last December for crypto companies include keeping customer assets separate from the firm’s assets and employing a third-party custodian.
US regulators, meanwhile, view cryptocurrencies such as stablecoins as possible derivatives just as the Canadian Securities Administrators have done.
This has led to a prohibition of margin and leverage trading for Canadian customers.
From May 31, Bybit will no longer accept account opening applications from Canadian nationals. Its existing customers will be unable to make new deposits, enter into new contracts, or increase current positions from July 31.