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Bybit Flags off Service Suspension in the UK
The Dubai-based cryptocurrency exchange, Bybit, disclosed on September 22 that it will pause its business operations in the United Kingdom. This move comes in response to the forthcoming regulatory guidelines from the UK's Financial Conduct Authority, also known as the FCA.
Suspension Schedule
From October 1, Bybit will cease accepting new account applications from UK residents, according to their announcement. The closure's subsequent process will include the halt of new deposits, the cessation of new contracts, and the prevention of changes to positions for existing clients starting October 8.
Marketing Rules Prompt Service Suspension
The crypto exchange alluded to the UK Financial Conduct Authority's recently introduced marketing and communication regulations as their reason behind the pause in services. Bybit has chosen to exercise a proactive stance toward embracing the impending regulations by temporarily immobilising their UK operations.
Compliance Deadline and Regulations
The FCA has set a deadline corresponding with Bybit's end of service to ensure crypto asset firms advertising to UK users comply with a set of regulation, outlined in June. The primary objective of these regulations is to ensure that marketing efforts remain “transparent, fair and unambiguous." The FCA sent out a reminder to all firms on September 21, warning them about the October 8 deadline and the possibility of a lawsuit if the deadline is not met.
Aligning Efforts with New Regulations
Bybit believes their suspension will allow them to solely concentrate their efforts and resources on aligning with the UK authorities' future regulations better. The FCA hinted at extended compliance up to January 2024 for certain firms, subject to initial approval from the regulator.
Bybit Trading Services Expansion and Contraction
In May, Bybit had also discontinued services in Canada, citing the reason as 'recent regulatory development.' However, Bybit has been expanding into new areas during this period, after receiving preliminary approval in Kazakhstan to serve as a cryptocurrency custody service provider in May.
