Dubai-based cryptocurrency exchange Bybit has revealed its decision to halt services in the United Kingdom due to impending regulations from the country’s Financial Conduct Authority (FCA).
In a statement released on September 22, Bybit declared its plan to initiate the suspension of services to U.K. residents beginning on October 1, with the immediate discontinuation of new account applications. This action will be followed by the suspension of new deposits, new contracts, and modifications to positions for existing users on October 8.
Bybit articulated its reasoning for this move by saying that, in response to the new regulations on marketing and communication imposed by the UK Financial Conduct Authority, it has chosen to proactively embrace regulation and temporarily suspend services in this market.
Bybit’s timetable for winding down its services coincides with the FCA’s deadline for crypto asset firms engaged in marketing to U.K. users to adhere to specific rules aimed at ensuring transparent, equitable, and non-misleading marketing practices. The FCA initially introduced these rules in June and issued an additional warning on September 21, reiterating the October 8 deadline and the potential legal consequences. Bybit’s suspension of services is seen as a means to reallocate resources and efforts to better align with future regulatory requirements established by U.K. authorities.
It’s worth noting that the FCA has indicated that some firms may have until January 2024 to comply with the marketing rules, contingent on prior approval from the regulatory body.
Notably, Bybit had previously announced a similar phase-out of services in Canada back in May, citing recent regulatory developments as the reason. Nonetheless, the company has expanded its operations into new markets, including Kazakhstan, where it received preliminary approval in May to operate as a crypto custody service provider.
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