Cryptocurrency exchange Bybit announced on Tuesday that it will exit the Canadian market and stop opening new accounts for users starting Wednesday. The exchange cited “recent regulatory development” as the reason for its decision.

Bybit’s move comes after the Canadian Securities Administrators (CSA) regulatory body said in February that crypto firms planning to operate in Canada must register their compliance with a new set of regulatory guidelines.

The CSA’s new guidelines include requirements for crypto firms to have adequate risk management systems and to protect customer assets.

Bybit’s exit from Canada follows the decision of Binance, the world’s largest crypto exchange, to also pull out of the country. Binance cited new guidance related to stablecoins and investor limits as the reason for its decision.

The exits of Bybit and Binance from Canada are a sign of the growing regulatory scrutiny of the cryptocurrency industry.

In recent months, regulators around the world have been taking steps to tighten oversight of crypto firms. This trend is likely to continue, as regulators seek to protect investors and prevent the use of cryptocurrencies for illicit activities.

The exits of Bybit and Binance from Canada could have a negative impact on the Canadian crypto market. These exchanges were two of the largest crypto exchanges in Canada, and their departures could leave a void in the market. This could make it more difficult for Canadian investors to access crypto products and services.