Bybit has announced that it will continue to seek options to maintain its presence in the United Kingdom even as a new regulation regime for virtual assets comes into effect in October 2023.
In a post on X, the crypto exchange highlighted that the UK is “a highly important market for the advancement of crypto and blockchain technologies,” and it is committed to maintaining its presence in the country for the long term.
At Bybit, we consider the UK to be a highly important market for the advancement of crypto and blockchain technologies. Our commitment to this market is unwavering, and we intend to maintain our presence in the UK for the long term. Meanwhile, we are dedicated to working…
— Bybit (@Bybit_Official) September 14, 2023
Bybit also claimed it is working with regulators on the new regulations to ensure a responsible and secure development of the cryptocurrency industry.
Ben Zhou, the exchange’s CEO, echoed this message in reply to the official statement, stating: “Compliance is Bybit first priority. Regarding the UK new crypto regulation, we are in talks with the regulator to find the best solution moving forward. No final agreement has been reached, and we will keep our communities informed.”
This announcement follows reports suggesting that Bybit might follow in the footsteps of other crypto-related firms that have temporarily suspended their operations in the UK due to the impending regulatory changes. Luno, another cryptocurrency exchange, recently announced a pause in its UK services.
The UK’s new regulatory framework, introduced in June 2023, specifically targets the advertising of crypto services to UK residents. Under these regulations, any company promoting crypto services to the local populace must obtain authorization from the Financial Conduct Authority (FCA). The rules also aim to restrict referral programs and any practices that might unduly incentivize individuals to invest in cryptocurrencies. Importantly, these regulations apply to crypto businesses, regardless of their geographical location, as long as they serve UK citizens.
Though the new rules are set to take full effect on October 8, 2023, the FCA has expressed a willingness to provide an extended grace period of up to three months for companies needing additional time to comply with the regulations.
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