Bybit Halts UK Operations Ahead of New Regulations
- Bybit claimed the decision to quit the UK was part of its plans to comply with the changing regulatory environment in the UK.
- The UK is set to introduce a new set of laws that monitor crypto marketing activities.
Following the UK’s Financial Conduct Authority’s (FCA) plans to enforce a new set of crypto marketing rules, cryptocurrency exchange Bybit has decided to cease its operations in the country. According to reports, the decision aligns with its plans to comply with the changing regulatory environment.
Bybit made the announcement in a blog post:
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 suspension will allow the company to focus its efforts and resources on being able to best meet the regulations outlined by the UK authorities in the future.
The FCA recently announced plans to implement new rules designed to improve openness and accuracy in the marketing of cryptocurrencies. Overall, the regulator claimed that the new rule would create a safer trading environment for cryptocurrency enthusiasts.
Meanwhile, Bybit said it will stop accepting UK residents on its platform on October 1, 2023. Furthermore, existing UK users will not be able to make new deposits, enter into new contracts, or raise their existing holdings across all of Bybit’s services from October 8. However, customers can cut back on or close their positions and withdraw funds from the trading platform.
Bybit further noted that UK clients have until January 8, 2024, to organize and wind down their remaining assets. Afterward, any open positions will be instantly liquidated, and the proceeds will then be accessible for withdrawal.
The exchange added:
We apologize for any inconvenience caused to our UK clients, and we appreciate your continued support for our efforts to make crypto trading safer and more sustainable for the future of the industry.
There’s currently no news on how long Bybit plans to stay out of the UK, leaving open the possibility of a return to the market. The exchange’s choice to proactively comply with legislative amendments is in line with a wider industry trend where exchanges and cryptocurrency service providers are adjusting to changing legal climates.
Bybit is not the only company to suspend operations in the UK as a result of the new laws. PayPal also announced in August that it would temporarily halt all of its cryptocurrency-related operations in the country until 2024. Others, like Binance and OKX, are evaluating the risks associated with these new rules.
Some crypto experts believe the FCA’s policies leave many questions unanswered, as having a website accessible to UK users could pass as an unsanctioned advertisement.
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