Crypto news

Bybit to Halt Services in UK After Financial Regulator’s ‘Final Warning’

Dubai-based cryptocurrency exchange Bybit has made the decision to suspend its services to customers in the United Kingdom in response to impending regulations set by the Financial Conduct Authority (FCA).

According to an announcement made on September 22, Bybit will begin the process of suspending services for UK residents on October 1, starting with the discontinuation of new account applications.

This will be followed by the suspension of new deposits, new contracts, and changes to positions for existing users on October 8.

Bybit stated that the suspension of services is a proactive response to the introduction of new rules by the UK FCA regarding marketing and communications by crypto businesses.

The exchange has chosen to embrace these regulations and temporarily pause its operations in the UK market.

This development highlights Bybit’s commitment to compliance with regulatory requirements and its willingness to adapt to changes in the crypto landscape to ensure a responsible and legally compliant operation.

Bybit has set its wind-down date to align with the deadline set by the UK Financial Conduct Authority (FCA) for crypto asset firms to comply with specific rules aimed at establishing transparent and non-misleading marketing practices.

The FCA initially introduced these rules in June and recently issued a warning on September 21, emphasizing the October 8 deadline and the potential consequences of criminal charges for non-compliant firms.

Bybit Suspends Services in the UK to Meet Regulatory Requirements, Expands into New Markets

bybit

Bybit has announced the suspension of its services in the United Kingdom, stating that this move will allow the company to allocate its efforts and resources towards meeting future regulatory requirements outlined by UK authorities.

The Financial Conduct Authority (FCA) has suggested that certain firms could have until January 2024 to achieve compliance with the marketing rules, subject to prior approval from the regulator.

Bybit’s decision to suspend services in the UK follows its previous winding down of services in Canada in May.

The company attributed this action to “recent regulatory developments” at that time.

Despite these adjustments, Bybit has been actively expanding into new markets.

In May, the company received in-principle approval to operate as a crypto custody service provider in Kazakhstan, reflecting its commitment to growth and diversification.

Bybit’s strategic approach demonstrates its willingness to adapt to regulatory changes while seeking opportunities in emerging markets.

This allows the company to navigate evolving regulatory landscapes while expanding its reach to provide innovative crypto services to new regions.

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