Dubai-based cryptocurrency exchange Bybit has revealed its decision to halt operations in the United Kingdom in response to impending regulations set forth by the country’s Financial Conduct Authority (FCA).
The exchange made this announcement on September 22, outlining a phased approach to suspending services for UK residents, commencing on October 1.
Beginning on October 1, Bybit will cease accepting new account applications from UK residents.
This initial step will be followed by further restrictions on October 8, which include suspending new deposits, prohibiting the creation of new contracts, and preventing changes to existing positions for their current user base.
The company’s decision to suspend services in the UK stems from the FCA’s introduction of new regulations governing marketing and communication practices within the cryptocurrency industry.
Bybit is opting to proactively embrace these regulations and temporarily halt operations in the UK market.
By doing so, Bybit aims to ensure compliance with the FCA’s rules, which are designed to establish clear, fair, and non-misleading marketing standards for crypto businesses.
Bybit’s timeline for winding down its services coincides with the FCA’s deadline for crypto asset firms marketing to UK users to fully comply with the specified rules.
The FCA initially unveiled these regulations in June and, on September 21, issued a reminder of the October 8 deadline while emphasizing the potential legal consequences for non-compliant firms.
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Bybit has expressed that the suspension of services in the UK will enable the company to direct its efforts and resources toward aligning with future UK regulatory requirements.
Notably, the FCA has suggested that certain firms may have until January 2024 to achieve compliance with the marketing rules, subject to prior approval from the regulator.
Earlier in May, Bybit undertook a similar winding-down process for its services in Canada, citing “recent regulatory developments” as the driving force behind the decision.
However, the company has also embarked on expansion efforts in various other regions.
Notably, it secured in-principle approval to operate as a cryptocurrency custody service provider in Kazakhstan in May, demonstrating its commitment to evolving in compliance with regulatory landscapes worldwide.
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