Bybit is the next to exit Canada, stating regulatory reason

[Oshosondy]

You can read the announcement directly from Bybit: https://announcements.bybit.com/article/notice-on-exit-from-canadian-market-bltc1bfb8746d077fda/#

It was OKX, Binance was the next, now Bybit stopping to provide its products and services to Canadians. With what I am thinking, it is possible that more exchanges will leave Canada soon because of the regulatory development which we have talked about before.

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[Wiwo]

Well whatever happens around harsh regulatory policy decisions, there are always an alternative and I guess Canadian exchange users will migrate to the next available exchange if the closing date has been reached, this may be seen as a major setback to Canada's crypto adoption and friendliness but then it makes no much impact on the individual adoption level since their citizens will continue to own and use cryptocurrency and other digital assets.

[robelneo]

Bybit is one of the biggest exchanges in the industry, they have a trust rating score of 10 and are number three in Coingecko's standing, this is a big blow to Canadian supporters.

According to this article : https://www.ibtimes.com/major-cex-joins-crypto-businesses-canada-exodus-cites-no-longer-tenable-market-condition-3693125

The new rules classify stablecoins as a security and restrict businesses "from permitting Canadian clients to enter into crypto contracts to buy and sell any crypto asset that is itself a security and/or a derivative."

"Unregistered platforms operating in Ontario that are non-compliant may be included on the OSC Investor Warnings and alerts page and subject to regulatory action, including temporary orders," the Ontario Securities Commission (OSC) said.

Canada is such a huge market and Binance the first to left is still hoping to make a comeback in the Canadian market when the authorities ease up in their strict regulation on Cryptocurrency, I just hope after Canada no country will follow its lead, its the kind of news that hampers Cryptocurrency adoption.

[logfiles]

With what I am thinking, it is possible that more exchanges will leave Canada soon because of the regulatory development which we have talked about before.

Yeah, this is obvious, more will follow suit.
Exchanges don't just leave willing, especially when they know that the more trading volumes, the more money they make. The regularity atmosphere there must really be very harsh

According to this article : https://www.ibtimes.com/major-cex-joins-crypto-businesses-canada-exodus-cites-no-longer-tenable-market-condition-3693125

The new rules classify stablecoins as a security and restrict businesses "from permitting Canadian clients to enter into crypto contracts to buy and sell any crypto asset that is itself a security and/or a derivative."

Who else thinks this quoted text is meant to sideline the current stablecoins in preparation from the introduction of CBDCs. As more countries try to force citizens to turn back to their legal tenders that are in digital forms, they will be banning exchanges from offering stablecoins to their citizens.

[bbc.reporter]

Another country bites the dust hehe.

In any case, does anyone know what specific law or rule that caused exchanges to completely close their service from Canada? This appears to be something stricter and more aggressive than what the US SEC are doing under their jurisdiction.

It might also be that those exchanges need to have a .ca domain with the users under the Canadian jurisdiction separated from the international crypto market very much similar to the .us domains. I shake my head. I reckon this restricts borderlessness, another innovation that the cryptospace has brought us.

[Poker Player]

In any case, does anyone know what specific law or rule that caused exchanges to completely close their service from Canada?

I do not know the specific case, but I am not surprised by who has long ruled the country, a leftist who does not like Bitcoin, as it is logical because what he likes is a big state that controls everything.

Canadian Prime Minister Justin Trudeau Attacks Opposition for Recommending Bitcoin as Inflation Hedge

Let us also remember what happened to the truck drivers there:

Canada Sanctions 34 Crypto Wallets Tied to Trucker 'Freedom Convoy'

So I don't know the specific circumstances of the case now, but I am not surprised within the general political line.

[Darker45]

Yeah, it's either they comply and stay or not and leave.

Another country bites the dust hehe.

In any case, does anyone know what specific law or rule that caused exchanges to completely close their service from Canada? This appears to be something stricter and more aggressive than what the US SEC are doing under their jurisdiction.

It might also be that those exchanges need to have a .ca domain with the users under the Canadian jurisdiction separated from the international crypto market very much similar to the .us domains. I shake my head. I reckon this restricts borderlessness, another innovation that the cryptospace has brought us.

Here's the discussion about it. Basically, it's the enhanced pre-registration undertaking and some more rules such as the prohibition of leverage trading and the use of stablecoins.

In fairness, while OKX and Binance and Bybit didn't make it or at least didn't file for registration under the new measures, Bitbuy, Coinsquare, Fidelity, and others have already gotten their registrations. Kraken, Coinbase, Crypto.com, DigiFinex, Gemini, and others have already made the necessary filings.

All in all, I guess more can be said about those exchanges that didn't take the necessary steps to get registered than those that complied.

[noorman0]

Who else thinks this quoted text is meant to sideline the current stablecoins in preparation from the introduction of CBDCs. As more countries try to force citizens to turn back to their legal tenders that are in digital forms, they will be banning exchanges from offering stablecoins to their citizens.

So this kind of rule makes offshore exchanges immobile and will feel loose only for local Canadian exchanges, they of course make CAD the main market pair.

In any case, does anyone know what specific law or rule that caused exchanges to completely close their service from Canada? This appears to be something stricter and more aggressive than what the US SEC are doing under their jurisdiction.

I'm just quoting quick points, more...

- Segregation in crypto custody
 - Appointment of a Chief Compliance Officer
 - No Leveraged Trading
 - Prohibition of Stablecoins

The last two rules I think are the most difficult to enforce for exchanges that deal with a large number of customers from various national bases.

[Husires]

If the big exchanges leave, then it is only a matter of time and the small platforms will leave. Only the local platforms will remain.
Since the news of OKX, I have not been surprised by any new news because it is a foregone conclusion.

The list goes on and the funniest thing is that they have a decentralized platform, DyDx https://www.cryptotimes.io/decentralized-exchange-dydx-pulls-out-of-canadian-market/ and Paxos https://coingeek.com/paxos-exits-canada-amid-increasing-regulatory-crackdown/

The bright side is that some platforms have made an Enhanced Pre-Registration Undertaking (PRU) with the main regulator to continue operations and the number of platforms under review is more than 10. https://www.securities-administrators.ca/crypto-trading-platforms-regulation-and-enforcement-actions/crypto-trading-platforms-that-have-filed-pre-registration-undertakings/

There is an active canada exchange topic here Exchanges X Canada  it is best to lock this topic and keep updating that topic.

[Rikafip]

Afaik, US customsers can't use Bybit either so this was not a big surprise.

Seems like their recent decision to make KYC mandatory for all users (newe and old) didn't help them much to continue opoerating in highly regulated countries like Canada.

[Dunamisx]

You can read the announcement directly from Bybit: https://announcements.bybit.com/article/notice-on-exit-from-canadian-market-bltc1bfb8746d077fda/#

It was OKX, Binance was the next, now Bybit stopping to provide its products and services to Canadians. With what I am thinking, it is possible that more exchanges will leave Canada soon because of the regulatory development which we have talked about before.

Many of the crypto exchanges have been suffering a giant blow serving a threat from the government because of the issue with regulations, all that i can sense is that they wouldn't want to give them chances for a good operational ground if they are not in concession with the tax the government will be billing them, Binance have also experience such with some of it stations and this is only because the gover think the exchanges are making more from their user's as profits and taxing them as well should not be difficult to achieve, but what i see is the exhobirant billing which is unfair enough, many exchanges are now looking for more places which are bitcoin friendly and enabling environment like in El-Savador.

[batang_bitcoin]

Won't be surprising if there will be more even small exchanges that's based there in Canada to get out of their jurisdiction. When the big exchanges are struggling to comply to the policies that they have and to the compliance that they're requiring, there will be a domino effect.
I feel bad for the Canadians that have found some comfort with these exchanges that's been out of their country because of their government's poor consideration with this. I think this has something to do with the truck drivers before that had their bank accounts frozen and the means of receiving their donations were true crypto. That's just a speculation and wild guess from me.

[bbc.reporter]

Yeah, it's either they comply and stay or not and leave.

Another country bites the dust hehe.

In any case, does anyone know what specific law or rule that caused exchanges to completely close their service from Canada? This appears to be something stricter and more aggressive than what the US SEC are doing under their jurisdiction.

It might also be that those exchanges need to have a .ca domain with the users under the Canadian jurisdiction separated from the international crypto market very much similar to the .us domains. I shake my head. I reckon this restricts borderlessness, another innovation that the cryptospace has brought us.

Here's the discussion about it. Basically, it's the enhanced pre-registration undertaking and some more rules such as the prohibition of leverage trading and the use of stablecoins.

In fairness, while OKX and Binance and Bybit didn't make it or at least didn't file for registration under the new measures, Bitbuy, Coinsquare, Fidelity, and others have already gotten their registrations. Kraken, Coinbase, Crypto.com, DigiFinex, Gemini, and others have already made the necessary filings.

All in all, I guess more can be said about those exchanges that didn't take the necessary steps to get registered than those that complied.

Okay then this is not what everyone is trying to make it appear if Coinbase, Kraken and Gemini continue to operate within Canadian jurisdiction. I thought it was a mass exit where all of the exchanges are forced to leave because of a ban similar to China hehe.

Prohibition or stricter regulations on leverage is okay, I reckon. Prohibition of stablecoins is also okay. I have always joked that stablecoins are fractionalized currencies that are backed by another fractionalized currency. It has entered fractionception hehehehehe.

[joniboini]

Won't be surprising if there will be more even small exchanges that's based there in Canada to get out of their jurisdiction. When the big exchanges are struggling to comply to the policies that they have and to the compliance that they're requiring, there will be a domino effect.

If I remember correctly, Bitbuy claims that they are the first registered Canadian crypto exchange. Compared to other exchanges, they are quite small afaik. I think another scenario can also happen, where more exchanges become more regulated and comply with whatever the government tells them. At the end of the day, as long as the market exists, they will definitely try to take profit from that IMO. But yeah, if the risk and cost are not worth it, then P2P is probably the only option.

[Darker45]

Yeah, it's either they comply and stay or not and leave.

~snip~

Here's the discussion about it. Basically, it's the enhanced pre-registration undertaking and some more rules such as the prohibition of leverage trading and the use of stablecoins.

In fairness, while OKX and Binance and Bybit didn't make it or at least didn't file for registration under the new measures, Bitbuy, Coinsquare, Fidelity, and others have already gotten their registrations. Kraken, Coinbase, Crypto.com, DigiFinex, Gemini, and others have already made the necessary filings.

All in all, I guess more can be said about those exchanges that didn't take the necessary steps to get registered than those that complied.

Okay then this is not what everyone is trying to make it appear if Coinbase, Kraken and Gemini continue to operate within Canadian jurisdiction. I thought it was a mass exit where all of the exchanges are forced to leave because of a ban similar to China hehe.

Prohibition or stricter regulations on leverage is okay, I reckon. Prohibition of stablecoins is also okay. I have always joked that stablecoins are fractionalized currencies that are backed by another fractionalized currency. It has entered fractionception hehehehehe.

I'm not sure if everyone is trying to make it appear like that, but it simply isn't the case. Definitely, if others are comparing it with China's ban, that's obviously being blown way out of proportion. Well, mass exit because there were a number of them, but it's not like everybody's packing up. Some have stayed. And they're big players.

I, too, am not a big fan of leverage trading and stablecoins, and I'm also in favor of heavily regulating centralized exchanges. But I also think a complete ban on those might be too much. They could be allowed but tightly regulated. They're tools, after all. For example, leverage is allowed but only up to 20:1.

[avp2306]

You can read the announcement directly from Bybit: https://announcements.bybit.com/article/notice-on-exit-from-canadian-market-bltc1bfb8746d077fda/#

It was OKX, Binance was the next, now Bybit stopping to provide its products and services to Canadians. With what I am thinking, it is possible that more exchanges will leave Canada soon because of the regulatory development which we have talked about before.

Anything could happen especially if the government intervene the operation of some business, so if they shutdown the service of particular site to their citizens then for sure it can affect a lot to the people who use to trust that platform. If Canadian government will have strict law regarding on related services for sure a lot of exchange will depart on that country since they don't want to have trouble on that country. But If there's a worries about it can affect the crypto maybe yes in short time but all will recover and crypto usage might became normal to affected since for sure their citizens will find ways to continue their trading activities.

[batang_bitcoin]

Won't be surprising if there will be more even small exchanges that's based there in Canada to get out of their jurisdiction. When the big exchanges are struggling to comply to the policies that they have and to the compliance that they're requiring, there will be a domino effect.

If I remember correctly, Bitbuy claims that they are the first registered Canadian crypto exchange. Compared to other exchanges, they are quite small afaik. I think another scenario can also happen, where more exchanges become more regulated and comply with whatever the government tells them. At the end of the day, as long as the market exists, they will definitely try to take profit from that IMO.

Yeah, it's possible. While exchanges like ByBit gets out of the country, there will be the other companies that will think of what's left behind and they'll take that as an opportunity that they should just do whatever the regulators are asking for any compliance that they can do easily.

But yeah, if the risk and cost are not worth it, then P2P is probably the only option.

True and that's why for some reasons they're out while there's still a market that they can work with, this is for the other remaining exchanges be it big or small. It really depends on their approach and how they're being approached but on this case, when they feel the pressure and can't take the heat in the kitchen then they'll have to be out.

[bbc.reporter]

Yeah, it's either they comply and stay or not and leave.

~snip~

Here's the discussion about it. Basically, it's the enhanced pre-registration undertaking and some more rules such as the prohibition of leverage trading and the use of stablecoins.

In fairness, while OKX and Binance and Bybit didn't make it or at least didn't file for registration under the new measures, Bitbuy, Coinsquare, Fidelity, and others have already gotten their registrations. Kraken, Coinbase, Crypto.com, DigiFinex, Gemini, and others have already made the necessary filings.

All in all, I guess more can be said about those exchanges that didn't take the necessary steps to get registered than those that complied.

Okay then this is not what everyone is trying to make it appear if Coinbase, Kraken and Gemini continue to operate within Canadian jurisdiction. I thought it was a mass exit where all of the exchanges are forced to leave because of a ban similar to China hehe.

Prohibition or stricter regulations on leverage is okay, I reckon. Prohibition of stablecoins is also okay. I have always joked that stablecoins are fractionalized currencies that are backed by another fractionalized currency. It has entered fractionception hehehehehe.

I'm not sure if everyone is trying to make it appear like that, but it simply isn't the case. Definitely, if others are comparing it with China's ban, that's obviously being blown way out of proportion. Well, mass exit because there were a number of them, but it's not like everybody's packing up. Some have stayed. And they're big players.

I, too, am not a big fan of leverage trading and stablecoins, and I'm also in favor of heavily regulating centralized exchanges. But I also think a complete ban on those might be too much. They could be allowed but tightly regulated. They're tools, after all. For example, leverage is allowed but only up to 20:1.

Agreed. If there has to be strict regulations, I reckon very strict regulatory procedures should be created only for users who want to avail of accounts that gives them access to leverage. This might be where the income bracket assessment might become useful. If some users does not reach a certain income bracket then no leverage, buy coins 1:1 and hold them under your own custody hehehe.

If Canada is tolerant on swapping fiat for a few selected cryptocoins and strict on leverage, this might be the best regulatory compromise by any government.

[Agbe]

You can read the announcement directly from Bybit: https://announcements.bybit.com/article/notice-on-exit-from-canadian-market-bltc1bfb8746d077fda/#

It was OKX, Binance was the next, now Bybit stopping to provide its products and services to Canadians. With what I am thinking, it is possible that more exchanges will leave Canada soon because of the regulatory development which we have talked about before.

I don't think Binance will leave there. When we talk about government policies, it is not meant to make investors run but to make investors come close to the country but for those companies that cannot meet up the demands of the government will leave while those who can provide the demands of the government can stay long. And for you to make profit from that country your servises must be very good to support humanity. And the f you look at it, Binance in all countries is trying to make sure that they render a good service to the people so they can make profit. So all those companies that are not good enough to adapt to the government policies definitely would fold up and go to a country that the policies are not harsh. Binance will not leave and if Binance leave Canada then it will be very difficult for an exchange to stay in Canada.

[coin-investor]

I don't think Binance will leave there. When we talk about government policies, it is not meant to make investors run but to make investors come close to the country but for those companies that cannot meet up the demands of the government will leave while those who can provide the demands of the government can stay long. And for you to make profit from that country your servises must be very good to support humanity. And the f you look at it, Binance in all countries is trying to make sure that they render a good service to the people so they can make profit. So all those companies that are not good enough to adapt to the government policies definitely would fold up and go to a country that the policies are not harsh. Binance will not leave and if Binance leave Canada then it will be very difficult for an exchange to stay in Canada.

You overlooked the articles provided in this thread Binance already left the Canadian market they tweeted this more than three weeks ago

https://twitter.com/binance/status/1657099651210969088

......While we do not agree with the new guidance, we hope to continue to engage with Canadian regulators aimed at a thoughtful, comprehensive regulatory framework. We are confident that we will someday return to the market when Canadian users once again have the freedom to access a broader suite of digital assets.

This is unfortunate for Canadian Crypto users but I'm sure the Canadian Crypto supporters will find a way to continue holding their coins, there will always change in policy in the future Cryptocurrency technology cannot be stopped not by any government policy.