Crypto exchange Bybit is set to suspend its services in the UK market ahead of the incoming crypto marketing rules by the Financial Conduct Authority (FCA).
In an announcement today, Bybit stated:
“In light of the UK Financial Conduct Authority’s introduction of new rules regarding marketing and communications by crypto businesses as outlined in the June 2023 Policy Statement (PS23/6) entitled ‘Financial Promotion Rules for Crypto assets,’ Bybit has made a choice to embrace the regulation proactively and pause our services in this market.”
The Financial Conduct Authority published crypto marketing rules earlier this month which it said is designed to make the marketing of cryptoasset products transparent and more accurate. Effective from October 8, the regulations include a cooling-off period for first-time investors.
In light of the new rules, Bybit CEO Ben Zhou earlier talked about the possibility of the exchange leaving UK. He said stricter regulations would cause the exchange to retreat from various regions, with the UK being on the list.
From October 1, Bybit will cease accepting new UK user account applications. Bearing in mind that the FCA new rules is set to be to enforced by October 8, existing UK users can no longer make any new deposits, create new contracts or increase any of their existing positions for all products and services. Customers will be able to reduce or close their positions and withdraw their funds from the platform.
Bybit set January, 8, 2024 as the final deadline for UK users to manage and close down their remaining positions. The exchange said that any position left open after this date will be liquidated automatically, with the resulting funds made available for withdrawal.
Right now, there is no specific duration for this suspension or even if Bybit will ever return to the UK market. However, the firm did note that the exit will afford them the opportunity to focus their efforts and resources on being able to meet the rules outlined by the UK authorities in the future.
Furthermore, Bybit apologized to their UK users for any inconvenience the move has caused and also appreciated their continuous support.
Stricter Regulations
The UK crypto market has seen tighter regulations in recent times, prompting some companies like PayPal to exit the country. Just yesterday, the FCA warned crypto firms over “poor engagement” with the new rules.
