
Is Bybit Legal in Canada? Is Bybit Safe?
Choosing a trustworthy cryptocurrency exchange is crucial as it directly impacts the safety and security of your digital assets. The high risk of scams in this area necessitates extreme caution from users.
Our analysts have noticed a growing interest in Bybit services among users in the Canada. However, questions remain regarding its safety and legal status within the Canada. Traders Union experts have addressed this concern by crafting a detailed review that explores both the pros and cons of using Bybit.
So, let us tell you if Bybit is allowed in the Canada and if it's safe to use for trading.
Is Bybit legal in Canada? Does it have a license?
Bybit is a regulated exchange that provides services in most countries worldwide, except for those under international sanctions, such as North Korea, Iran, Syria, Cuba, and regions like Crimea, Donetsk, and Luhansk. Restrictions may also apply based on requests from local regulators. We compared Bybit's level of regulation with the top two global competitors and the top two competitors available in your country. Exchanges with Tier-1 regulation are generally considered the safest. However, Bybit's safety level is also influenced by other factors outlined below.
Bybit | MEXC | OKX | |
---|---|---|---|
Government-regulated |
Yes |
No |
Yes |
Tier-1 regulation |
Yes |
No |
No |
U.S regulation |
No |
No |
No |
FCA U.K |
No |
No |
No |
AUSTRAC in Australia |
No |
No |
No |
DFSA in UAE |
No |
No |
No |
AMF in France |
No |
No |
No |
Spain |
No |
No |
No |
Germany |
No |
No |
No |
Singapore |
No |
No |
No |
MFSA in Malta |
No |
No |
Yes |
Seychelles |
Yes |
No |
No |
Other countries |
Austria’s Financial Market Authority (FMA), Georgia, Kazakhstan |
||
Open an account |
|
|
|
Other Bybit Security Factors to Consider
Bybit | MEXC | OKX | |
---|---|---|---|
2FA |
Yes |
Yes |
Yes |
Verification (KYC) |
Yes |
Yes |
Yes |
Successful hacks |
Yes |
No |
No |
Cold wallet storage |
Yes |
Yes |
Yes |
Investor protection fund |
Yes |
No |
Yes |
Open an account |
|
|
|
Short summary about the Bybit exchange
Bybit is a leading cryptocurrency exchange specializing in derivatives trading. Its proprietary trading platform is user-friendly but caters primarily to experienced traders who are comfortable with advanced financial instruments. Integration with TradingView provides seamless market analysis and trade execution. Bybit is regulated by the AFSA (Astana Financial Services Authority - Kazakhstan), holds a preliminary license from the VARA (Virtual Assets Regulatory Authority - Dubai) and secures MiCAR (Markets in Crypto-Assets Regulation) license from Austria’s Financial Market Authority (FMA).
Bybit allows highly leveraged trading of up to 100x with a clear and transparent fee structure. For those seeking alternative investment strategies, Bybit offers copy trading programs for both derivatives and spot markets, enabling users to automatically replicate the trades of successful investors. The exchange provides 24/7 customer support, a safe banking environment, and instant deposits/withdrawals. Additionally, Bybit offers a crypto debit card, allowing users to spend their digital assets on everyday purchases.
💰 Account currency: | Cryptocurrencies |
🚀 Minimum deposit: | From USD 1 |
⚖️ Leverage: | Up to 1:100 |
💱 Spread: | From USD 1 |
🔧 Instruments: | BTC/USD, ETH/USD, XRP/USD, EOS/USD and BTC/USDT, USDT pairs — ETH/USDT, LINK/USDT, LTC/USDT, XTZ/USDT |
💹 Margin Call / Stop Out: | No |
Bybit Pros and Cons
👍 Bybit Pros:
•It has a convenient, intuitive proprietary trading platform that is presented in the browser version, which eliminates conflicts with the operating system and braking when sending orders;
•Integration with TradingView allows users to simplify crypto market analysis and trading via a single platform;
•Combination of futures and perpetual contracts trading;
•There is an order book that allows you to assess the depth of the market and current trading volumes;
•It has a minimum entry threshold. The cost of a BTC/USD futures contract is USD 1;
•It is possible to open long and short positions with subsequent mutual recalculation;
•Opportunities for Muslim traders to participate in the crypto market.
👎 Bybit Cons:
•It has conditions for trading futures that are difficult for beginners, such as the formula for calculating the leverage, the terminology of the funding size and the premium index, funding rates, etc.;
•Lacks a mechanism to protect the interests of traders in the event of controversial issues;
Rules and Regulation
Cryptocurrency Regulation in Canada
Cryptocurrency regulation in Canada is controlled by various regulatory bodies to ensure compliance and protect investors. The primary regulatory authority is the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC), which monitors cryptocurrency exchanges for compliance with anti-money laundering (AML) and know your client (KYC) regulations.
Licensing Demands
Cryptocurrency exchanges that operate in Canada are required to register with FINTRAC and comply with AML/KYC regulations. Additionally, some provinces may require exchanges to obtain additional licenses or registrations, depending on their specific activities.
Investor Protection
Investor protection in the cryptocurrency market is a priority in Canada. The Canadian Securities Administrators (CSA) issues warnings and guidelines to educate investors about the risks associated with cryptocurrency investments. Moreover, the Ombudsman for Banking Services and Investments (OBSI) offers recourse for investors in case of disputes with cryptocurrency service providers.
Taxation
Profits from trading cryptocurrencies are subject to taxation in Canada. The Canada Revenue Agency (CRA) treats cryptocurrencies as commodities for tax purposes. Therefore, capital gains tax applies to cryptocurrency transactions, and traders are required to report their gains as income. Tax rates depend on various factors, including the individual's income bracket and the frequency of trading.
Do I recommend using Bybit in the Canada?
The Bybit cryptocurrency exchange can certainly be recommended for traders from Canada. The platform is well suited for trading cryptocurrencies. Despite that the company does not have a financial license, as this kind of activity is not subject to licensing in Canada in general, the exchange has a good reputation. The company’s team has developed reliable account protection and closely monitors the security of the platform.
FAQ
Can I work with crypto exchanges considering that they don’t have a license in Canada?
The fact that a crypto exchange does not have a license doesn’t mean that traders from Canada will have problems while working with it. Cryptocurrency exchanges are not subject to licensing in many countries, while there are many exchanges with good reputation. Assess the available information about the exchange and check its reputation.
What security methods for account protection do crypto exchanges employ?
Cryptocurrency exchanges may offer various security methods. These include the two-factor authentication, first and foremost, and also such methods as a security question, additional passwords, etc.
Can an exchange that has had a security-related incident in the past be trusted?
You need to check whether such incidents were regular. If it was one episode several years ago, while the reputation of the exchange is good, you can work with such an exchange.
Should I work with an exchange if I have doubts about its reputation?
No. Always choose the cryptocurrency exchanges that have a good reputation.
Team that worked on the article
Mikhail Vnuchkov joined Traders Union as an author in 2020. He began his professional career as a journalist-observer at a small online financial publication, where he covered global economic events and discussed their impact on the segment of financial investment, including investor income. With five years of experience in finance, Mikhail joined Traders Union team, where he is in charge of forming the pool of latest news for traders, who trade stocks, cryptocurrencies, Forex instruments and fixed income.
Dr. BJ Johnson is a PhD in English Language and an editor with over 15 years of experience. He earned his degree in English Language in the U.S and the UK. In 2020, Dr. Johnson joined the Traders Union team. Since then, he has created over 100 exclusive articles and edited over 300 articles of other authors.