Bybit Halts Operations in the UK Amid Regulatory Changes

Dubai-based cryptocurrency exchange, Bybit, has declared a halt in its services to the United Kingdom due to forthcoming regulations from the UK’s Financial Conduct Authority (FCA). The announcement, made on September 22, outlines a phased suspension starting October 1, when new account creations will be ceased. Subsequently, on October 8, new deposits, contracts, and adjustments to positions for existing users will also be suspended.

The actions by Bybit are in response to the FCA’s new rules concerning marketing and communications by cryptocurrency businesses. The firm stated that this proactive approach towards the suspension will allow them to better adhere to the new regulatory environment in the UK.

This timeline coincides with the FCA’s deadline for cryptocurrency asset firms to align with the rules intended to ensure a “clear, fair, and not misleading” marketing approach. Initially disclosed in June, the FCA issued a reminder on September 21 about the October 8 deadline, also hinting at potential criminal charges for non-compliance.

Bybit believes this service suspension will enable them to concentrate on adapting to the regulations set forth by UK authorities for a compliant future operation. Although the FCA noted that certain firms could have until January 2024 to comply with these marketing rules, it emphasized that prior approval from the regulatory body is mandatory.

This is not the first time Bybit has withdrawn services due to regulatory changes; a similar instance occurred in Canada in May. Despite such pullbacks, Bybit is exploring new horizons as evident in their expansion into Kazakhstan, where they received preliminary approval to operate as a crypto custody service provider in May.