Cryptocurrency exchange Bybit has decided to withdraw from the Canadian market, following in the footsteps of Binance due to regulatory constraints. Faced with these new requirements imposed by the authorities, Bybit has been forced to suspend its products and services for Canadian residents.
Canada, a difficult environment for cryptocurrencies
While the Biden administration and regulators are waging a battle against Bitcoin and cryptocurrencies in the US, Canada is no exception. The Trudeau administration and the regulations in place also seem to be opposed to the plans of cryptocurrency exchange platforms wishing to develop in the country. As a result, some companies, such as Bybit, have decided to leave the Canadian market.
A climate of severe regulation
In recent years, the crypto-currency market has exploded in popularity and value. However, while this popularity has increased the number of users, it has also caused a number of legal problems. Today, more and more players in society are calling for regulations to be introduced on this still-growing market. As a result, Canada is one of the countries where the political players have chosen to introduce a fairly strict regulatory climate on the cryptocurrency market.
Consequences for Canadian users
Canadian residents with accounts on the Bybit platform will therefore have to prepare to have their services suspended and transfer their funds to other platforms. This could also prompt other exchanges to reconsider their presence on the Canadian market in view of the regulatory constraints imposed by the local authorities.
Alternatives for investors
Kraken : A US-based cryptocurrency exchange platform that operates in Canada and offers a wide range of cryptocurrencies to trade.
Coinbase: Another American giant, Coinbase allows Canadian residents to buy and sell cryptocurrencies via bank transactions.
Bitbuy: A Canadian exchange platform that offers services similar to those of Bybit and Binance, but respects local regulations.
An uncertain future for cryptocurrencies in Canada
The departure of Bybit and Binance from the Canadian market raises questions about the future of cryptocurrencies in the country. Indeed, local regulators must strike a balance between protecting consumers and promoting technological innovation. However, it is possible that some companies will choose to avoid the Canadian market due to these regulatory constraints, limiting options for investors and hindering the development of the crypto ecosystem in the country.
A need for clarification and adaptation
Crypto players regularly call on the US and Canadian authorities to clarify the regulations, but they are not necessarily prepared to sign up to them by complying with the latest rules. It will therefore be important for regulators to work in collaboration with companies in the sector to create an environment that is more conducive to the development of crypto.
