In a surprising turn of events, Bybit has announced the suspension of its services in the United Kingdom (UK). Starting from October 1, 2023, the exchange will cease onboarding new users residing in the UK. Existing users in the region are expected to wind down their positions on the exchange by January 8, 2024.
Bybit’s decision to suspend services in the UK stems from its proactive approach to complying with the Financial Conduct Authority’s (FCA) new crypto regulations, slated to take effect from October 8, 2023.
In its statement released on September 22, 2023, Bybit apologized to its UK customers for any inconvenience this suspension may cause. The exchange emphasized that this action allows them to redirect their efforts and resources toward aligning with future UK regulatory requirements.
This announcement marks a notable shift from Bybit’s prior stance. The exchange had previously dispelled rumors about suspending UK operations, expressing its commitment to UK users and exploring options for regulatory compliance. Ben Zhou, Bybit’s CEO, further stated that the exchange is already
“in talks with the regulator to find the best solution moving forward.”
Zhou, however, stated there had been no final agreement at that moment, and they would update their customers when one had been reached.
FCA Issues Stern Warning to Crypto Firms Over Compliance With New Regulations
On September 21, 2023, the Financial Conduct Authority (FCA) issued a stern warning to cryptocurrency firms operating in the UK regarding compliance with the upcoming regulations. The FCA expressed concerns about the lack of engagement by crypto firms, particularly those operating from abroad.
The UK’s new regulatory framework, introduced in June 2023, primarily targets the promotion of crypto services to UK residents. These regulations mandate that any company advertising crypto services to the local populace must obtain authorization from the FCA. The rules also aim to curtail referral programs and practices that might excessively incentivize individuals to invest in cryptocurrencies. Notably, these regulations apply to crypto businesses worldwide as long as they serve UK citizens.
While the regulations are scheduled to take full effect on October 8, 2023, the FCA has indicated a willingness to offer an extended grace period of up to three months for companies requiring additional time to ensure compliance.
If you want to read more news articles like this, visit DeFi Planet and follow us on Twitter, LinkedIn, Facebook, Instagram, and CoinMarketCap Community.
“Take control of your crypto portfolio with MARKETS PRO, DeFi Planet’s suite of analytics tools.”
