Crypto Exchange Bybit Halts UK Services in Response to New Regulations
The move comes as the company seeks to comply with the UK Financial Conduct Authority’s new rules on crypto businesses.
Cryptocurrency exchange Bybit has announced that it will suspend its services in the United Kingdom (UK) starting next month. This decision comes as the company aims to align its operations with the new regulatory requirements introduced by the UK Financial Conduct Authority (FCA).
The FCA’s new rules, outlined in the June 2023 Policy Statement (PS23/6) titled “Financial Promotion Rules for Crypto assets,” have prompted Bybit’s decision. The exchange plans to use this suspension period to concentrate resources on complying with these new regulations.
This move by Bybit is in anticipation of the October 8 deadline for companies to comply with the UK’s new marketing rules on advertisements and promotions. According to these rules, crypto companies must obtain regulatory approval from the FCA to support advertisements and other promotional materials. Currently, Bybit, which is based in Dubai, is not included in the FCA’s crypto register. However, the company recently obtained a crypto exchange and custody license in Cyprus.
Starting from October 1, Bybit will no longer accept new registrations. Services for existing customers will cease on October 8. After this date, current Bybit customers will not be able to make deposits, create new contracts, or increase positions. However, they will still have the ability to reduce or close positions and withdraw funds.
Bybit has advised all its UK customers to take necessary steps to manage and wind down their positions. The deadline for these actions is January 8, 2024, at 8:00 am UTC. After this deadline, any open positions will be liquidated, and the liquidation funds will be available for withdrawal.